§ 25-9-625. Remedies for secured party's failure to comply with Article.
SUBPART2. Noncompliance with Article.
§ 25‑9‑625. Remedies for secured party's failure to comply with Article.
(a) Judicial ordersconcerning noncompliance. If it is established that a secured party is notproceeding in accordance with this article, a court may order or restraincollection, enforcement, or disposition of collateral on appropriate terms andconditions.
(b) Damages fornoncompliance. Subject to subsections (c), (d), and (f) of this section, aperson is liable for damages in the amount of any loss caused by a failure tocomply with this Article. Loss caused by a failure to comply may include lossresulting from the debtor's inability to obtain, or increased costs of,alternative financing.
(c) Persons entitled torecover damages; statutory damages in consumer‑goods transaction. Except as otherwise provided in G.S. 25‑9‑628:
(1) A person that, atthe time of the failure, was a debtor, was an obligor, or held a securityinterest in or other lien on the collateral may recover damages undersubsection (b) of this section for its loss; and
(2) If the collateral isconsumer goods, a person that was a debtor or a secondary obligor at the time asecured party failed to comply with this Part may recover for that failure inany event an amount not less than the credit service charge plus ten percent(10%) of the principal amount of the obligation or the time‑pricedifferential plus ten percent (10%) of the cash price.
(d) Recovery whendeficiency eliminated or reduced. A debtor whose deficiency is eliminatedunder G.S. 25‑9‑626 may recover damages for the loss of anysurplus. However, a debtor or secondary obligor whose deficiency is eliminatedor reduced under G.S. 25‑9‑626 may not otherwise recover undersubsection (b) of this section for noncompliance with the provisions of thisPart relating to collection, enforcement, disposition, or acceptance.
(e) Statutory damages:noncompliance with specified provisions. In addition to any damagesrecoverable under subsection (b) of this section, the debtor, consumer obligor,or person named as a debtor in a filed record, as applicable, may recover fivehundred dollars ($500.00) in each case from a person that:
(1) Fails to comply withG.S. 25‑9‑208;
(2) Fails to comply withG.S. 25‑9‑209;
(3) Files a record thatthe person is not entitled to file under G.S. 25‑9‑509(a);
(4) Fails to cause thesecured party of record to file or send a termination statement as required byG.S. 25‑9‑513(a) or (c);
(5) Fails to comply withG.S. 25‑9‑616(b)(1) and whose failure is part of a pattern, orconsistent with a practice, of noncompliance; or
(6) Fails to comply withG.S. 25‑9‑616(b)(2).
(f) Statutory damages:noncompliance with G.S. 25‑9‑210. A debtor or consumer obligormay recover damages under subsection (b) of this section and, in addition, fivehundred dollars ($500.00) in each case from a person that, without reasonablecause, fails to comply with a request under G.S. 25‑9‑210. Arecipient of a request under G.S. 25‑9‑210 which never claimed aninterest in the collateral or obligations that are the subject of a requestunder that section has a reasonable excuse for failure to comply with therequest within the meaning of this subsection.
(g) Limitation ofsecurity interest: noncompliance with G.S. 25‑9‑210. If a securedparty fails to comply with a request regarding a list of collateral or astatement of account under G.S. 25‑9‑210, the secured party mayclaim a security interest only as shown in the list or statement included inthe request as against a person that is reasonably misled by the failure. (1965,c. 700, s. 1; 1975, c. 862, s. 7; 2000‑169, s. 1.)