N.D. Cent. Code § 32-16-20: How proceeds of encumbered property applied

The proceeds of the sale of encumbered property must be applied under the direction of the court as follows:

1.To pay its just proportion of the general costs of the action.

2.To pay the costs of the reference.

3.To satisfy and cancel of record the several liens in their order of priority, by payment of the sums due and to become due, and the amount due to be verified by affidavit at the time of payment.

4.The residue among the owners of the property sold, according to their respective shares therein.