8.9A-626 - A-626. Action in which deficiency or surplus is in issue.
§ 8.9A-626. Action in which deficiency or surplus is in issue.
Applicable rules if amount of deficiency or surplus in issue. In an actionarising from a transaction in which the amount of a deficiency or surplus isin issue, the following rules apply:
(1) A secured party need not prove compliance with the provisions of thispart relating to collection, enforcement, disposition, or acceptance unlessthe debtor or a secondary obligor places the secured party's compliance inissue.
(2) If the secured party's compliance is placed in issue, the secured partyhas the burden of establishing that the collection, enforcement, disposition,or acceptance was conducted in accordance with this part.
(3) Except as otherwise provided in § 8.9A-628, if a secured party fails toprove that the collection, enforcement, disposition, or acceptance wasconducted in accordance with the provisions of this part relating tocollection, enforcement, disposition, or acceptance, the liability of adebtor or a secondary obligor for a deficiency is limited to an amount bywhich the sum of the secured obligation, expenses, and attorney's feesexceeds the greater of:
(A) the proceeds of the collection, enforcement, disposition, or acceptance;or
(B) the amount of proceeds that would have been realized had the noncomplyingsecured party proceeded in accordance with the provisions of this partrelating to collection, enforcement, disposition, or acceptance.
(4) For purposes of subsection (3) (B), the amount of proceeds that wouldhave been realized is equal to the sum of the secured obligation, expenses,and attorney's fees unless the secured party proves that the amount is lessthan that sum.
(5) If a deficiency or surplus is calculated under § 8.9A-615 (f), the debtoror obligor has the burden of establishing that the amount of proceeds of thedisposition is significantly below the range of prices that a complyingdisposition to a person other than the secured party, a person related to thesecured party, or a secondary obligor would have brought.
(2000, c. 1007.)