THE MICHIGAN PENAL CODE (EXCERPT) Act 328 of 1931

750.159r Sale of seized property by unit of government; disposal of received money; order of priority; appointment, compensation, and duties of receiver. Sec. 159r.

(1) If property is criminally or civilly forfeited under this chapter, the unit of government that seized or filed a lien against the property may sell the property that is not required to be destroyed by law and that is not harmful to the public and may dispose of the money received from the sale of the property and any money, negotiable instrument, security, or other thing of value that is forfeited pursuant to this chapter in the following order of priority: (a) Pay any outstanding security interest or unpaid land contract balance of a secured party or land contract vendor who did not have prior actual knowledge of, or consent to the commission of, the crime. (b) Satisfy any order of restitution in the prosecution for the crime. (c) Pay the claim of each person who shows that he or she is a victim of the crime to the extent that the claim is not covered by an order of restitution. (d) Pay any valid outstanding lien against the property that has been imposed by a governmental unit. (e) Pay the proper expenses of the proceedings for forfeiture and sale, including, but not limited to, expenses incurred during the seizure process and expenses for maintaining custody of the property, advertising, and court costs. (f) The balance remaining after the payment of restitution, the claims of victims, outstanding liens, and expenses shall be distributed by the court having jurisdiction over the forfeiture proceedings to the unit or units of government substantially involved in effecting the forfeiture. The money received by a unit of government under this subdivision shall be used to enhance enforcement of the criminal laws. (2) In the course of selling real property pursuant to subsection (1), the court that enters an order or sentence of forfeiture, on motion of the unit of government to which the property is forfeited, may appoint a receiver to dispose of the real property forfeited. The receiver is entitled to reasonable compensation. The receiver may do all of the following: (a) List the forfeited real property for sale. (b) Make whatever arrangements are necessary for maintaining and preserving the forfeited real property. (c) Accept offers to purchase the forfeited real property. (d) Execute instruments transferring title to the forfeited real property.

History: Add. 1995, Act 187, Eff. Apr. 1, 1996

Simplified Explanation of Michigan Penal Code Section 750.159r

This part of the Michigan Penal Code explains what happens to property that has been seized and forfeited due to criminal or civil proceedings under this law.

1. Sale of Seized Property: If property is seized and forfeited, the governmental unit that seized the property or filed a lien against it can sell the property, as long as it's not required by law to be destroyed or harmful to the public.

2. Use of Sale Proceeds: The money received from the sale of the property and any forfeited money, negotiable instruments, securities, or other valuables is used in the following priority order:

   • a) Pay any outstanding secured interest or unpaid land contract balance for any party that didn't know about or consent to the crime.
   • b) Satisfy any order of restitution in the prosecution for the crime.
   • c) Pay claims of each person who shows they are a victim of the crime, to the extent that the claim is not covered by an order of restitution.
   • d) Pay any valid outstanding liens against the property imposed by a governmental unit.
   • e) Cover the costs of the forfeiture and sale proceedings, including costs for seizing and maintaining the property, advertising, and court costs.
   • f) Any remaining balance is distributed to the governmental unit or units involved in carrying out the forfeiture. This money should be used to improve enforcement of criminal laws.

3. Appointment of a Receiver for Real Property: In the process of selling real property, the court that orders or sentences the forfeiture may appoint a receiver to handle the property's disposal, on motion of the governmental unit to which the property is forfeited. The receiver is entitled to reasonable compensation and can list the property for sale, maintain and preserve the property, accept offers to purchase, and execute documents to transfer the property's title.

Please note, this explanation is a simplified summary of the law and not legal advice. Always consult a legal professional for matters related to law.