(c) Public auction.— The following shall apply:

1. (1) If the owner, lienholder or operator of the impounded vehicle or equipment does not act to secure possession of the impounded property within 45 days of the date of impoundment, the authority may publicly auction all confiscated property. The authority may not schedule the impounded vehicle or equipment for auction if the owner, lienholder or operator has initiated proceedings before the authority to contest the underlying violation or the propriety of the impoundment.
2. (2) At least 30 days before the date of the public auction, the authority shall provide notice by regular mail to the registered owner and any registered lienholder of the public auction of confiscated vehicles and equipment. The notice required under this paragraph may be provided within the period of 45 days of the date of impoundment.

3. (3) The authority shall apply the proceeds from the sale of all confiscated property in the following order:

   1. (i) Except as provided under subparagraph (v), to satisfy any liens on the vehicle or, if the vehicle is subject to a lease, to pay the lessor damages due to the lessor upon default by the lessee as provided under 13 Pa.C.S. § 2A527 (relating to lessor's rights to dispose of goods).
   2. (ii) To the costs of the authority associated with the confiscation, impoundment and auction.
   3. (iii) To all penalties imposed and all outstanding penalties assessed against the owner and operator of the confiscated property.
   4. (iv) Except as provided in subparagraph (v), to the registered owner of the confiscated property upon demand.
   5. (v) When not claimed by any registered lienholder or registered owner within one year of the auction date, to the restricted account provided for under section 57A22 (relating to assessment).