2015 Kentucky Revised Statutes CHAPTER 426 - ENFORCEMENT OF JUDGMENTS 426.290 Sale of encumbered property under execution -- Rights of purchaser, creditor -- Redemption -- Bond of purchaser of personalty -- Control of courts.
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426.290 Sale of encumbered property under execution -- Rights of purchaser,
creditor -- Redemption -- Bond of purchaser of personalty -- Control of courts.
(1)
(2)
(3)
(4)
(5)
(6)
If the defendant in an execution owns the legal title to any real or personal property
on which a bona fide encumbrance created prior to the execution lien exists, the
interest of the defendant in the property may be levied on and sold, subject to the
encumbrance.
The purchaser at the sale shall acquire a lien on such property for the purchase
money, and interest at the rate of ten percent per annum from the day of sale until
paid, subject to any prior encumbrance.
Any other creditor, whether by judgment or otherwise, may, after such execution
and sale, by equitable proceedings, subject the encumbered property to sale, and,
after satisfying prior liens, have his demand satisfied out of the proceeds of the
residue. The proceedings in equity shall be instituted before the purchaser has, by
suit, enforced the lien provided for in subsection (2) of this section.
The defendant in the execution may redeem the property sold by paying the original
encumbrance, with legal interest thereon, and by paying the purchaser his purchase
money, with ten percent per annum interest thereon.
The purchaser of encumbered movable property shall, before possession is
delivered to him, give an obligation with good surety payable to the encumbrancer
and the owner, stipulating that the property shall not be removed out of the county
and shall be preserved and forthcoming, unavoidable accidents excepted, to answer
the encumbrance, and for redemption, and deliver the obligation to the officer to be
returned with the execution.
Courts of equity shall have control of all encumbered property sold under execution,
and may make all needful orders for the preservation and forthcoming of the
property and its issues and profits, to satisfy the encumbrance and to secure the
rights of others.
Effective: October 1, 1942
History: Recodified 1942 Ky. Acts ch. 208, sec. 1, effective October 1, 1942, from Ky.
Stat. sec. 1709.
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