Before exercising the right to sell property that has been seized under this title, a lienholder shall give to the forfeiting authority: written notice of the intention to sell; copies of documents giving rise to the lien; an affidavit under oath by the lienholder: stating that the underlying obligation is in default; and stating the reasons for the default. On request of the lienholder, the forfeiting authority shall release the property to the lienholder.

Except as provided in subsection (b) of this section, the law governing the sale of collateral securing an obligation in default governs a lienholder’s repossession and sale of property that has been seized under this title. A lienholder may not be required to take possession of the property before the sale of the property.

Any part of the proceeds from a sale of property that has been seized under this title that would be paid to an owner of the property under the applicable law relating to distribution of proceeds: shall be paid to the seizing authority; and shall be property subject to forfeiture. If an order of forfeiture is not entered, the State shall return to the owner that part of the proceeds and any costs of the forfeiture proceedings paid from the proceeds of the sale.

If the interest of the owner in property that has been seized under this title is redeemed, the lienholder shall mail a notice of the redemption to the forfeiting authority within 10 days after the redemption. If property that has been seized under this title has been repossessed or otherwise lawfully taken by the lienholder, the lienholder shall return the property to the seizing authority within 21 days after the redemption. The seizing authority and the forfeiting authority may then proceed with the forfeiture of the property or the proceeds from the sale of the property. Time limitations required under this title for notice and filing of the complaint for forfeiture run from the date of redemption or purchase of the property that has been seized under this title.

This title does not prohibit a lienholder from exercising rights under applicable law, including the right to sell property that has been seized under this title, if a default occurs in the obligation giving rise to the lien.