The sale of any property on which there is a lien toward satisfaction of the claim secured thereby, and in case of personal property, its wrongful conversion by the person holding the lien, extinguishes the lien thereon.

Source: CivC 1877, § 1718; CL 1887, § 4342; RCivC 1903, § 2038; RC 1919, § 1543; SDC 1939, § 39.0120.