31. Application of proceeds

(1) Proceeds from the exercise of an enforcement power must be used to pay the amount outstanding.
(2) Proceeds are any of these —
(a) proceeds of sale or disposal of controlled goods;
(b) money taken in exercise of the power, if paragraph 24(1) (best price) does not apply to it.
(3) The amount outstanding is the sum of these —
(a) the amount of the debt which remains unpaid (or an amount that the creditor agrees to accept in full satisfaction of the debt);
(b) any amounts recoverable out of proceeds in accordance with rules under paragraph 41 (costs).
(4) If the proceeds are less than the amount outstanding, which amounts in sub-paragraph (3)(a) and (b) must be paid, and how much of any amount, is to be determined in accordance with rules.
(5) If the proceeds are more than the amount outstanding, the surplus must be paid to the debtor.
(6) If there is a co-owner of any of the goods, the enforcement agent must —
(a) first pay the co-owner a share of the proceeds of those goods proportionate to his interest;
(b) then deal with the rest of the proceeds under sub-paragraphs (1) to (5).
(7) Rules may make provision for resolving disputes about what share is due under sub-paragraph (6)(a).