Sec. 42a-9-616. Explanation of calculation of surplus or deficiency.
Sec. 42a-9-616. Explanation of calculation of surplus or deficiency. (a) In this
section:
(1) "Explanation" means a writing that:
(A) States the amount of the surplus or deficiency;
(B) Provides an explanation in accordance with subsection (c) of how the secured
party calculated the surplus or deficiency;
(C) States, if applicable, that future debits, credits, charges, including additional
credit service charges or interest, rebates and expenses may affect the amount of the
surplus or deficiency; and
(D) Provides a telephone number or mailing address from which additional information concerning the transaction is available.
(2) "Request" means a record:
(A) Authenticated by a debtor or consumer obligor;
(B) Requesting that the recipient provide an explanation; and
(C) Sent after disposition of the collateral under section 42a-9-610.
(b) In a consumer-goods transaction in which the debtor is entitled to a surplus
or a consumer obligor is liable for a deficiency under section 42a-9-615, the secured
party shall:
(1) Send an explanation to the debtor or consumer obligor, as applicable, after the
disposition and:
(A) Before or when the secured party accounts to the debtor and pays any surplus
or first makes written demand on the consumer obligor after the disposition for payment
of the deficiency; and
(B) Within fourteen days after receipt of a request; or
(2) In the case of a consumer obligor who is liable for a deficiency, within fourteen
days after receipt of a request, send to the consumer obligor a record waiving the secured
party's right to a deficiency.
(c) To comply with subparagraph (B) of subdivision (1) of subsection (a) of this
section, a writing must provide the following information in the following order:
(1) The aggregate amount of obligations secured by the security interest under
which the disposition was made, and, if the amount reflects a rebate of unearned interest
or credit service charge, an indication of that fact, calculated as of a specified date:
(A) If the secured party takes or receives possession of the collateral after default,
not more than thirty-five days before the secured party takes or receives possession; or
(B) If the secured party takes or receives possession of the collateral before default
or does not take possession of the collateral, not more than thirty-five days before the
disposition;
(2) The amount of proceeds of the disposition;
(3) The aggregate amount of the obligations after deducting the amount of proceeds;
(4) The amount, in the aggregate or by type, and types of expenses, including expenses of retaking, holding, preparing for disposition, processing and disposing of the
collateral, and attorney's fees secured by the collateral which are known to the secured
party and relate to the current disposition;
(5) The amount, in the aggregate or by type, and types of credits, including rebates
of interest or credit service charges, to which the obligor is known to be entitled and
which are not reflected in the amount in subdivision (1); and
(6) The amount of the surplus or deficiency.
(d) A particular phrasing of the explanation is not required. An explanation complying substantially with the requirements of subsection (a) is sufficient, even if it includes
minor errors that are not seriously misleading.
(e) A debtor or consumer obligor is entitled without charge to one response to a
request under this section during any six-month period in which the secured party did
not send to the debtor or consumer obligor an explanation pursuant to subdivision (1)
of subsection (b) of this section. The secured party may require payment of a charge
not exceeding twenty-five dollars for each additional response.
(P.A. 01-132, S. 113.)