KRS 244.200: Rights of owner or lienor as to contraband -- Disposition of

contraband.

(1) Contraband property included in subsection KRS 244.180(5) shall be subject to

the right of any owner or lienor, whose lien is valid and of record, to intervene

and establish the owner or lienor's rights in the property by proving that the

property was being used in connection with traffic in alcoholic beverages

without the knowledge, consent, or approval of the owner or lienor.

(a) If the owner of the property proves the owner's lack of knowledge,

consent, or approval, the court shall order the property restored to the

owner; or

(b) If the lienor proves the lienor's lack of knowledge, consent, or approval,

the court shall order a sale of the property at public auction, unless an

agreement is made between the lienor and the board, which shall not

become final until it has been approved by the court. The board may

deliver any property found to be contraband to a lienor whose claim has

been established by order of a court of competent jurisdiction, upon

payment to the board of the difference between the fair market value of

the seized property and the recorded claim of the lienor.

(2) Where an agreement has been made between the lienor and the board and

approved by the court, a public auction shall not be required. If an agreement is

not entered into between the board and the lienor or approved by the court,

and a public auction is required, the public auction shall be conducted by the

sheriff of the county in which the property is seized. The sheriff shall receive

and be allowed the same fees as allowed for sales under execution.

(3) The expenses of keeping and selling the property, and the amount of all valid

recorded liens that are established by intervention as being bona fide, shall be

paid out of the proceeds of the sales, whether they are private or public. The

balance shall be paid into the State Treasury and be credited to the general

fund.

(4) If the defendant is acquitted, no property seized as contraband in connection

with the arrest of the defendant shall be ordered returned or restored unless

the person from whose possession the property was taken proves that the

person was in lawful possession of the property, and if no other person

appears and proves that the other person owns the property or has a valid

recorded lien on the property and that the property was being used without that

person's knowledge and consent, title shall vest in the board at the end of

ninety (90) days.

(5) If the owners or lienholders of any contraband seized by state administrators or

investigators of the department or turned over to the department by other

officials, cannot be located within ninety (90) days, and during that time fail to

appear and claim the contraband, or if the owner or lienholder appears and

agrees, title to the contraband shall immediately vest in the board, which may

sell the contraband at a private sale.