§651-94  Proceedings where real property can
be divided without material injury.  If the defendant is entitled to an
exemption as provided in section 651-92, and from the appraiser's report, it
appears to the judge that the real property claimed can be divided without
material injury and subject to applicable state and county land use, zoning,
and subdivision laws, the judge shall, by order, direct the appraisers to set
off to the defendant so much of the real property, including the residence and
outbuildings, as will amount in value to the real property exemption and all
liens and encumbrances and the execution may be enforced against the remainder
of the real property subject to all liens and encumbrances recorded prior to
the lien under which sale is made.



If a sale is made, the proceeds thereof shall
be applied in the following order of priority:  first, to the satisfaction of
the execution costs, attorney's and appraiser's fees, and any other fees that
may necessarily arise; second, to the satisfaction of the lien under which the
sale is made; third, to the discharge of any subsequent liens and encumbrances
according to their priority, and the balance, if any, to the defendant.  The
sale shall operate to extinguish subsequent liens and encumbrances on the
remainder sold without forcing prior lienors and encumbrancers to exercise
their right of recovery.



As used in this section, "material
injury" means that the value of the real property left after the set off
to the defendant is less than:  all liens and encumbrances on the real property
recorded prior to lien under which sale is made and an amount equal to
estimated execution costs, attorney's and appraiser's fees, and other fees. [L
1976, c 136, pt of §1; am L 1978, c 46, §8; gen ch 1985]