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HomeFinancial CodeDiv. 2Ch. 1Art. 5§ 5325 Forfeiture Proceeds Distribution

§ 5325 Forfeiture Proceeds Distribution

Financial Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 5325 Forfeiture Proceeds Distribution

Key Takeaways

  • •If the police take someone's property because of a crime, the money from selling it goes to certain people first.
  • •First, it goes to people who bought the property fairly or have a legal claim (like a bank loan) and to victims of the crime.
  • •Next, it pays back the government for costs like storing or fixing the property.
  • •Any leftover money goes to the government's general fund.

Example

If someone uses their car for a crime and the police take it, the car gets sold.

The money from selling the car first goes to the bank if there's a loan on the car, and to anyone hurt by the crime. Then, it pays for costs like towing and storing the car. Whatever is left goes to the city or state.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 5325 Forfeiture Proceeds Distribution

Notwithstanding that no response or claim has been filed pursuant to Section 5322, in all cases where property is forfeited pursuant to this article and, where necessary, sold by the Department of General Services or local governmental entity, the money forfeited or the proceeds of sale shall be distributed by the state or local governmental entity as follows: (a) To the bona fide or innocent purchaser, conditional sales vendor, or holder of a valid lien, mortgage or security interest, if any, and from the balance of any forfeited funds to any victim of a crime enumerated in Section 5320 committed by the defendant, up to the amount of his or her interest in the property or proceeds, when the court declaring the forfeiture orders a distribution to that person. The court shall endeavor to discover all such lienholders and protect their interests and may, at its discretion, order the proceeds placed in escrow for up to an additional 60 days to ensure that all valid claims are received and processed. The aggregate of all money distributed pursuant to this subdivision and all money received pursuant to a restitution order of a court shall not exceed the amount of the person’s interest in the property or proceeds. (b) To the Department of General Services or local governmental entity for all expenditures made or incurred by it in connection with the sale of the property, including expenditures for any necessary repairs, storage, or transportation of any property seized under this article. (c) The balance of forfeiture funds remaining after the obligations in subdivisions (a) and (b) have been satisfied shall be paid to the general fund of the state or local governmental entity, whichever prosecutes. (Amended by Stats. 1992, Ch. 1280, Sec. 4. Effective January 1, 1993.)

Last verified: January 23, 2026

Key Terms

restitutionportdefendantclaimpropertyobligationlienmortgage

Related Statutes

  • § 5115 Real Estate Loan Definition
  • § 5321 Forfeiture Petition Filing
  • § 5322 Property Claim Filing Procedure
  • § 22168 Misleading Professional Credentials
  • § 5323 Asset Preservation Orders

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Financial Code. Section 5325.
View Official Source