8.9A-616 - A-616. Explanation of calculation of surplus or deficiency.
§ 8.9A-616. Explanation of calculation of surplus or deficiency.
(a) Definitions. 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 thesecured party calculated the surplus or deficiency;
(C) states, if applicable, that future debits, credits, charges, includingadditional credit service charges or interest, rebates, and expenses mayaffect the amount of the surplus or deficiency; and
(D) provides a telephone number or mailing address from which additionalinformation 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 § 8.9A-610.
(b) Explanation of calculation. In a consumer-goods transaction in which thedebtor is entitled to a surplus or a consumer obligor is liable for adeficiency under § 8.9A-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 anysurplus or first makes written demand on the consumer obligor after thedisposition 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, withinfourteen days after receipt of a request, send to the consumer obligor arecord waiving the secured party's right to a deficiency.
(c) Required information. To comply with subsection (a) (1) (B), a writingmust provide the following information in the following order:
(1) the aggregate amount of obligations secured by the security interestunder which the disposition was made, and, if the amount reflects a rebate ofunearned 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 afterdefault, not more than thirty-five days before the secured party takes orreceives possession; or
(B) if the secured party takes or receives possession of the collateralbefore default or does not take possession of the collateral, not more thanthirty-five days before the disposition;
(2) the amount of proceeds of the disposition;
(3) the aggregate amount of the obligations after deducting the amount ofproceeds;
(4) the amount, in the aggregate or by type, and types of expenses, includingexpenses of retaking, holding, preparing for disposition, processing, anddisposing of the collateral, and attorney's fees secured by the collateralwhich 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, includingrebates of interest or credit service charges, to which the obligor is knownto be entitled and which are not reflected in the amount in paragraph (1); and
(6) the amount of the surplus or deficiency.
(d) Substantial compliance. A particular phrasing of the explanation is notrequired. An explanation complying substantially with the requirements ofsubsection (a) is sufficient, even if it includes minor errors that are notseriously misleading.
(e) Charges for responses. A debtor or consumer obligor is entitled withoutcharge to one response to a request under this section during any six-monthperiod in which the secured party did not send to the debtor or consumerobligor an explanation pursuant to subsection (b) (1). The secured party mayrequire payment of a charge not exceeding twenty-five dollars for eachadditional response.
(2000, c. 1007.)