(1) Except as provided in subsection (2) of this section, if a judgment is entered for a claimant in a proceeding under this chapter, the claimant’s property or interest in the property shall be returned or conveyed immediately to the claimant. All security interests, liens and other interests applicable to the property shall remain in effect as though the property had never been seized. Upon the return of the property to the owner, the seizing agency shall pay all costs and expenses relating to towing and storage of the property, and shall cause to be discharged any possessory chattel liens on the property arising under ORS 87.152 to 87.162 that have attached to the property since the seizure. The court shall award costs, disbursements and attorney fees in the manner provided by ORCP 68 to the prevailing claimant, to be paid by the forfeiting agency. If the property is a motor vehicle with a hidden compartment, the seizing agency is not liable for any diminution in the value of the property as a result of disabling the compartment.(2) If a judgment is entered for a claimant in a proceeding under this chapter, but the court has foreclosed one or more interests in the property under ORS 131A.250, the seizing agency shall pay all costs and expenses relating to towing and storage of the property, and shall cause to be discharged any possessory chattel liens on the property arising under ORS 87.152 to 87.162 that have attached to the property since the seizure. The judgment shall require that the property then be sold, pursuant to a sheriff’s sale or other sale authorized by the court, within such time as may be prescribed by the court. The property shall be sold subject to any interests in the property that have not been foreclosed, including any liens or security interests of a claimant whose claim has been upheld or of a financial institution that has filed the affidavit described in ORS 131A.240(1). The judgment shall require that the proceeds of the sale be applied as follows:
(a) The proceeds shall first be used to pay the costs of the sale.(b) If the property is a motor vehicle with a hidden compartment, after making the payment required by paragraph (a) of this subsection, the proceeds shall be used to reimburse the seizing agency for the cost of disabling the hidden compartment.(c) After payment of the costs of the sale and making any reimbursement required under paragraphs (a) and (b) of this subsection, the proceeds shall be applied to the satisfaction of the foreclosed liens, security interests and contracts in the order of their priority.(d) After making the payments required under paragraphs (a) to (c) of this subsection, any remaining amounts shall be paid to the claimant.
