Article IV. Attachment · Part 2. Watercraft · Last amended 1999 · Last verified July 20, 2026
In one sentenceSection 4-227 labels leftover sale funds "remnants and surplus proceeds" and sets a second priority order for claims against them: post-distribution costs, then other Part 2 liens, then mortgages by priority, then equitable judgments against the owner, then the owner.
Full Text of 735 ILCS 5/4-227
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Any portion of the sum so paid by the sheriff to the clerk, or of a deposit remaining after such distribution as hereinabove provided, shall be denominated remnants and surplus proceeds, and where any claim or complaint is filed against the same as provided in Part 2 of Article IV of this Act, distribution shall be directed by the court after judgment upon motion and notice, as provided in Section 4-226 of this Act, and after the following order: First - All costs upon claims passing into judgment which were filed after distribution. Second - All other liens enforceable under Part 2 of Article IV of this Act against the water craft prior to distribution.
Third - All claims upon mortgages of such water craft or other incumbrances by the owner, in proportion to the interest they cover and priority.
Fourth - Upon petition of the creditor, all judgments against the owner, and which ought equitably to be paid out of the proceeds in preference to the owner. Fifth - The owner.
Plain-English Summary
Money that remains after the Section 4-226 distribution, or left over from a deposit, is called remnants and surplus proceeds. When a claim or complaint is filed against those remaining funds under Part 2, the court directs a second round of distribution after judgment, on motion and notice, following its own order of priority.
First come all costs on claims that pass into judgment but were filed after the earlier distribution. Second come all other liens enforceable under Part 2 against the water craft that predate that distribution. Third come claims on mortgages of the craft or other encumbrances by the owner, paid in proportion to the interest they cover and their priority. Fourth, on a creditor's petition, come judgments against the owner that the court finds ought equitably to be paid from the proceeds ahead of the owner. Whatever remains after that goes to the owner.
Frequently Asked Questions
What are "remnants and surplus proceeds" under Section 4-227?
Money left over after the Section 4-226 distribution, or remaining from a deposit.
What is paid first from the remnants and surplus proceeds?
Costs on claims that passed into judgment but were filed after the earlier distribution.
What comes after those costs in the priority order?
All other liens enforceable under Part 2 against the water craft that predate that earlier distribution.
Where do mortgage claims rank in this order?
Third, paid in proportion to the interest they cover and their priority.
Who receives what is left after every other claim is paid?
The owner, after any judgments the court finds equitably payable from the proceeds ahead of the owner.
Amendment History
(Source: P.A. 91-357, eff. 7-29-99.)
Source & verification. Section text and amendment history are
reproduced verbatim from the Illinois Compiled Statutes, published by the
Illinois Compiled Statutes, Illinois General Assembly / Legislative Reference Bureau. Last verified July 20, 2026.
· Official source
Also known as:remnants surplus proceeds illinois vesselsecond distribution boat sale illinoismortgage priority watercraft sale proceedsowner residual funds vessel sale