Section 11488.6 Of Chapter 8. Seizure And Disposition From California Health And Safety Code >> Division 10. >> Chapter 8.
11488.6
. (a) If the court or jury at the forfeiture hearing finds
that the property is forfeitable pursuant to Section 11470, but does
not find that a person having a valid ownership interest, which
includes, but is not limited to, a valid lien, mortgage, security
interest, or interest under a conditional sales contract acquired
such interest with actual knowledge that the property was to be used
for a purpose for which forfeiture is permitted, and the amount due
such person is less than the appraised value of the property, such
person may pay to the state or the local governmental entity which
initiated the forfeiture proceeding the amount of the equity, which
shall be deemed to be the difference between the appraised value and
the amount of the lien, mortgage, security interest, or interest
under a conditional sales contract. Upon such payment, the state or
local governmental entity shall relinquish all claims to the
property. If the holder of the interest elects not to make such
payment to the state or local governmental entity, the property shall
be deemed forfeited to the state or local governmental entity and
the ownership certificate shall be forwarded. The appraised value
shall be determined as of the date judgment is entered on a wholesale
basis either by agreement between the legal owner and the
governmental entity involved, or if they cannot agree, then by the
inheritance tax appraiser for the county in which the action is
brought. A person having a valid ownership interest, which includes,
but is not limited to, a valid lien, mortgage, security interest, or
interest under a conditional sales contract shall be paid the
appraised value of his or her interest in accordance with the
provisions of Section 11489.
(b) If the amount due to a person having a valid ownership
interest, which includes, but is not limited to, a valid lien,
mortgage, security interest, or interest under a conditional sales
contract is less than the value of the property and the person elects
not to make payment to the governmental entity, the property shall
be sold at public auction by the Department of General Services or by
the local governmental entity which shall provide notice of such
sale by one publication in a newspaper published and circulated in
the city, community, or locality where the sale is to take place.
(c) The proceeds of sale pursuant to subdivision (b) shall be
first distributed in accordance with the provisions of Section 11489.