First National Bank of Coffeyville v. Mays

KAUGER, Justice.

The question presented is whether payment of the necessary costs of administration of a decedent’s insolvent estate has priority over extinguishment of mortgage indebtedness following the sale of mortgaged property. We find that a secured mortgage takes precedence over administrative expenses, and that only the excess proceeds from the sale of the property can be considered as assets of the estate for administrative purposes.

On September 14, 1977, Boyd Apperson (decedent) executed and delivered a second mortgage on certain real property to the First National Bank of…