§ 1354. Distribution of proceeds of sale. 1. The officer conducting
the sale shall pay, out of the proceeds, unless otherwise directed, the
expenses of the sale, and pay to the plaintiff, or his attorney, the
amount of the debt, interest and costs, or so much as the proceeds will
pay and take the receipt of the plaintiff, or his attorney, for the
amount so paid, and file the same with his report of sale.

2. The officer conducting the sale shall pay out of the proceeds all
taxes, assessments, and water rates which are liens upon the property
sold, and redeem the property sold from any sales for unpaid taxes,
assessments or water rates which have not apparently become absolute. In
any city having a population of three hundred thousand or more or any
city having a population between one hundred twenty-five thousand and
one hundred seventy-five thousand, such officer shall pay out of the
proceeds any liens or incumbrances placed by a city agency upon the real
property which have priority over the foreclosed mortgage. The sums
necessary to make those payments and redemptions are deemed expenses of
the sale. The provisions of this subdivision shall not apply to any
judgment in an action wherein any municipal corporation of this state is
the plaintiff and the purchaser at the foreclosure sale thereunder.

3. The officer conducting the sale after fully complying with the
provisions of subdivisions one and two of this section and if the
judgment of sale has so directed shall pay to the holder of any
subordinate mortgage or his attorney from the then remaining proceeds
the amount then due on such subordinate mortgage, or so much as the then
remaining proceeds will pay and take the receipt of the holder, or his
attorney for the amount so paid, and file the same with his report of
sale.

4. All surplus moneys arising from the sale shall be paid into court
by the officer conducting the sale within five days after the same shall
be received.