60-4116. Judicial disposition of property.
60-4116
60-4116. Judicial disposition of property.(a) If no proper claims are timely filed in an action inrem, orif no proper answer is timely filed in response to a complaint, theplaintiff's attorney may apply for an order of forfeiture andallocation of forfeited property pursuant to K.S.A. 60-4117, and amendmentsthereto. Upon adeterminationby the court that the seizing agency'swritten application established the court's jurisdiction, thegiving of proper notice, and facts sufficient to show probablecause for forfeiture, the court shall order the property forfeitedto the seizing agency.
(b) After final disposition of all claims timely filed in anaction in rem, or after final judgment and disposition of allclaims timely filed in an action in personam, the court shall enteran order that the seizing agency has clear title to the forfeitedproperty interest. Title to the forfeited property interest andsuch property's proceeds shall be deemed to have vested in the seizing agencyon the commission of the conduct giving rise to forfeiture underthis act.
(c) If, in the discretion of the plaintiff's attorney, suchplaintiff's attorney has recognized in writing that an interestholder has an interest that is exempt from forfeiture, the court,on application of the plaintiff's attorney, may release or conveyforfeited personal property to a regulated interest holder on allof the following conditions:
(1) The interest holder has an interest which was acquiredin the regular course of business as an interest holder.
(2) The amount of the interest holder's encumbrance isreadily determinable and the amount has been reasonably established byproof made available by the plaintiff's attorney to the court.
(3) The encumbrance held by the interest holder seekingpossession is the only interest exempted from forfeiture and theorder forfeiting the property to the seizing agency transferred allof the rights of the owner prior to forfeiture, including rights ofredemption to the seizing agency.
(4) After the court's release or conveyance, the interestholder shall dispose of the property by a commercially reasonablepublic sale, and within 10 days of disposition shall tender to theseizing agency the amount received at disposition less the amountof the interest holder's encumbrance and reasonable expenseincurred by the interest holder in connection with the sale ordisposal.
(d) On order of the court forfeiting the subject property, theseizing agency may transfer good and sufficient title to anysubsequent purchaser or transferee,unless satisfiedand released earlier, subject to all mortgages, deeds of trust, financingstatements or security agreements of record prior to the forfeiture held by aninterest holderand the title shall berecognized by all courts, by this state, and by all agencies of andany political subdivision. Likewise on entry of judgment in favorof a person claiming an interest in the property that is subject toproceedings to forfeit property under this act, the court shallenter an order that the property or interest in property shall bereleased or delivered promptly to that person free of liens andencumbrances under this act and the person's cost bond shallbe discharged.
(e) Upon motion by the plaintiff's attorney, if it appears aftera hearing there was reasonable cause for the seizure forforfeiture or for the filing of the notice of pending forfeiture orcomplaint, the court shall cause a finding to be entered thatreasonable cause existed, or that any such action was taken undera reasonable good faith belief that it was proper, and the claimantis not entitled to costs or damages, and the person or seizingagency who made the seizure, and the plaintiff's attorney, are notliable to suit or judgment on account of the seizure, suit orprosecution.
(f) The court shall order a claimant who fails to establish thata substantial portion of the claimant's interest is exempt fromforfeiture under K.S.A. 60-4105, and amendments thereto, to pay thereasonable costsand expenses of any claimant who established such claimant'sinterest is exempt from forfeiture under K.S.A. 60-4105 andto pay the reasonable costs and expenses of the seizing agency forthe investigation and litigation of the matter, includingreasonable attorney fees, in connection with that claimant.
(g) If more than one law enforcement agency is substantiallyinvolved in effecting a forfeiture pursuant to this act, and nointeragency agreement exists, the court shall equitably distributethe proceeds among such agencies.
(h) Notwithstanding any other provision of law, upon the request of theintellectual property owner, all seized items bearing a counterfeit mark shallbe released to the intellectual property owner for destruction or disposition.If the intellectual property owner does not request release of seized itemsbearing a counterfeit mark, such items shall be destroyed unless theintellectual property owner consents to another disposition.
History: L. 1994, ch. 339, § 16;L. 2000, ch. 62, § 4; July 1.