KRS 91.517: Confirmation of sale by court -- Priority of distribution of proceeds.

(1) After the master commissioner sells any parcel of real estate, the court shall, upon

its own motion or upon motion of any interested party, set the matter for a hearing

to confirm the sale, even if the parcels are not all of the parcels of real estate

described in the notice of the master commissioner's sale.

(2) If the sale is confirmed, the court shall order the proceeds of the sale applied in the

following order:

(a) To the payment of all costs, including court costs, publication costs, and costs

otherwise associated with the action and sale of the parcel described in the

particular count; and

(b) To the payment of all tax bills on the property, including principal, in terest,

and penalties.

(c) If after the payment under paragraphs (a) and (b) of this subsection there

remain any proceeds of the commissioner's sale of the property, the court shall

determine the other issues in the suit with respect to that particular count.

(d) If any of the answering parties has filed an appeal and executed an appropriate

supersedeas bond prior to the appeal, the court shall retain custody of the

funds pending disposition of the appeal, and upon disposition of the appeal

shall make distribution.

(e) If there are not sufficient proceeds of the sale to pay all claims in any class

described, the court shall order them to be paid in accordance with the

priorities.

(3) If there are any funds remaining of the proceeds after the commissione r's sale and

after the distribution of the funds as set out in this section and no person entitled to

any funds, whether or not a party to the action, has appeared within two (2) years

after the sale and claimed the funds, the funds shall escheat to the st ate as provided

in KRS Chapter 393.