Sale of seized property subject to forfeiture

(1) (a) Except for property that is required to be retained or preserved under Chapter 11c, Retention of Evidence, the court may order seized property for which a forfeiture proceeding is pending to: (i) be sold, leased, rented, or operated to satisfy a specified interest of any claimant; or (ii) preserve the interests of any party on motion of that party. (b) The court may only enter an order under Subsection (1)(a) after: (i) written notice to any person known to have an interest in the property has been given; and (ii) an opportunity for a hearing for any person known to have an interest in the property has occurred. (2) (a) A court may order a sale of property under Subsection (1) when: (i) the property is liable to perish, waste, or be significantly reduced in value; or (ii) the expenses of maintaining the property are disproportionate to the property's value. (b) A third party designated by the court shall: (i) dispose of the property by a commercially reasonable public sale; and (ii) distribute the proceeds in the following order of priority: (A) first, for the payment of reasonable expenses incurred in connection with the sale; (B) second, for the satisfaction of an interest, including an interest of an interest holder, in the order of an interest holder's priority as determined by Title 70A, Uniform Commercial Code; and (C) third, any balance of the proceeds shall be preserved in the actual or constructive custody of the court, in an interest-bearing account, subject to further proceedings under this chapter.