Michigan Compiled Laws, Chapter 570. Liens § 570.434

Sec. 34. Any portion of the sum so paid by the sheriff to the clerk, or of a deposit remaining after such distribution as aforesaid shall be denominated surplus proceeds, and when any claim or complaint shall be filed against the same, as provided in section 11 of this act,  1 distribution shall be directed by the court, after decrees or judgment, upon motion and notice as provided in the last section, and after the following order:

First. All costs upon claims passing into decree which were filed after sale:

Second. All other liens enforceable under this act against the water-craft prior to sale in the order in which they were filed:

Third. All claims upon mortgages of such watercraft or other incumbrances created by the owner in proportion to the interest they cover and priority:

Fourth. The owner.