Section 21-45-51 - Application of proceeds of sale of encumbered property 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 or priority, by payment of the sums due and to become due; 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. CCivP 1877, § 567; CL 1887, § 5381; RCCivP 1903, § 606; RC 1919, § 2817; SDC 1939 & Supp 1960, § 37.1418.