Kentucky Surplus Funds Laws
How mortgage foreclosure surplus, tax sale surplus and unclaimed funds work in Kentucky.
Mortgage foreclosure surplus
KRS § 426.500 governs an execution-sale surplus: an excess cash price is paid to the defendant owner, while a credit sale uses a bond payable to that owner. Mortgage foreclosures also require the court’s judgment and master commissioner’s accounting. Section 426.500 states no special deadline for claiming a surplus. The six-month redemption right in KRS § 426.530, when the price is below two-thirds of appraisal, concerns reacquiring the real estate and is not a surplus claim period.
Tax sale surplus
A county’s sale of a delinquent tax certificate under KRS ch. 134 is distinct from a later judicial foreclosure of that lien under § 134.546. First-class-city collector actions use KRS §§ 91.481–91.527; § 91.517 governs court distribution of any city-sale remainder. For a first-class-city collector foreclosure, amended KRS § 91.517(3) directs unclaimed remaining proceeds to escheat if no entitled person appears and claims within two years after sale (effective July 15, 2026). Other tax-certificate foreclosure proceeds follow the court order and applicable execution law.
Unclaimed funds
Kentucky Revised Uniform Unclaimed Property Act, KRS ch. 393A; § 393A.510 governs owner claims to the State Treasurer. No fixed initial owner-claim cutoff appears in § 393A.510. The administrator decides within 90 days under § 393A.520; a claimant may request an administrative hearing within one year after filing under § 393A.540.
Statute text
Links to the statutes referenced in our research. These may be third-party copies of older code editions, so check the current official code before relying on them.
