70A-9a-616 - Explanation of calculation of surplus or deficiency.
70A-9a-616. Explanation of calculation of surplus or deficiency.
(1) In this section:
(a) "Explanation" means a writing that:
(i) states the amount of the surplus or deficiency;
(ii) provides an explanation in accordance with Subsection (3) of how the secured partycalculated the surplus or deficiency;
(iii) states, if applicable, that future debits, credits, charges, including additional creditservice charges or interest, rebates, and expenses may affect the amount of the surplus ordeficiency; and
(iv) provides a telephone number or mailing address from which additional informationconcerning the transaction is available.
(b) "Request" means a record:
(i) authenticated by a debtor or consumer obligor;
(ii) requesting that the recipient provide an explanation; and
(iii) sent after disposition of the collateral under Section 70A-9a-610.
(2) In a consumer-goods transaction in which the debtor is entitled to a surplus or aconsumer obligor is liable for a deficiency under Section 70A-9a-615, the secured party shall:
(a) send an explanation to the debtor or consumer obligor, as applicable, after thedisposition and:
(i) before or when the secured party accounts to the debtor and pays any surplus or firstmakes written demand on the consumer obligor after the disposition for payment of thedeficiency; and
(ii) within 14 days after receipt of a request; or
(b) in the case of a consumer obligor who is liable for a deficiency, within 14 days afterreceipt of a request, send to the consumer obligor a record waiving the secured party's right to adeficiency.
(3) To comply with Subsection (1)(a)(ii), a writing must provide the followinginformation in the following order:
(a) the aggregate amount of obligations secured by the security interest under which thedisposition was made, and, if the amount reflects a rebate of unearned interest or credit servicecharge, an indication of that fact, calculated as of a specified date:
(i) if the secured party takes or receives possession of the collateral after default, notmore than 35 days before the secured party takes or receives possession; or
(ii) if the secured party takes or receives possession of the collateral before default ordoes not take possession of the collateral, not more than 35 days before the disposition;
(b) the amount of proceeds of the disposition;
(c) the aggregate amount of the obligations after deducting the amount of proceeds;
(d) the amount, in the aggregate or by type, and types of expenses, including expenses ofretaking, holding, preparing for disposition, processing, and disposing of the collateral, andattorney's fees secured by the collateral which are known to the secured party and relate to thecurrent disposition;
(e) the amount, in the aggregate or by type, and types of credits, including rebates ofinterest or credit service charges, to which the obligor is known to be entitled and which are notreflected in the amount in Subsection (3)(a); and
(f) the amount of the surplus or deficiency.
(4) A particular phrasing of the explanation is not required. An explanation complyingsubstantially with the requirements of Subsection (1) is sufficient, even if it includes minor errorsthat are not seriously misleading.
(5) A debtor or consumer obligor is entitled without charge to one response to a requestunder this section during any six-month period in which the secured party did not send to thedebtor or consumer obligor an explanation pursuant to Subsection (2)(a). The secured party mayrequire payment of a charge not exceeding $25 for each additional response.
Enacted by Chapter 252, 2000 General Session