What happens to proceeds when lienholders have an interest in forfeited assets?

• A. Proceeds are distributed to the public
• B. Their claims may be satisfied from proceeds, or they may seek to preserve their interest
• C. Proceeds always go to government
• D. Lienholders lose all rights

Answer: (B)

When assets are forfeited but there are liens, the proceeds must address those secured interests. If a lienholder has an interest, their claims can be satisfied from the proceeds, or they may file to preserve their security interest in the asset or its proceeds. This ensures the lienholder’s rights are respected and that the government does not pay out proceeds in a way that ignores valid liens. The other options miss this protection because proceeds aren’t automatically handed to the public or to the government alone, and lienholders don’t automatically lose their rights.