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The Vermont Statutes Online



Title

09A

:
Uniform Commercial Code






Chapter

009

:
Secured Transactions











 

§

9-626. Action in which deficiency or surplus is in issue

(a) In an action

arising from a transaction, other than a consumer transaction, in which the

amount of a deficiency or surplus is in issue, the following rules apply:

(1) A secured

party need not prove compliance with the provisions of this part relating to

collection, enforcement, disposition, or acceptance unless the debtor or a

secondary obligor places the secured party's compliance in issue.

(2) If the

secured party's compliance is placed in issue, the secured party has the burden

of establishing that the collection, enforcement, disposition, or acceptance

was conducted in accordance with this part.

(3) Except as

otherwise provided in section 9-628, if a secured party fails to prove that the

collection, enforcement, disposition, or acceptance was conducted in accordance

with the provisions of this part relating to collection, enforcement,

disposition, or acceptance, the liability of a debtor or a secondary obligor

for a deficiency is limited to an amount by which the sum of the secured

obligation, expenses, and attorney's fees exceeds 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 noncomplying secured party

proceeded in accordance with the provisions of this part relating to

collection, enforcement, disposition, or acceptance.

(4) For purposes

of paragraph (3)(B), the amount of proceeds that would have 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 less than that sum.

(5) If a

deficiency or surplus is calculated under section 9-615(f), the debtor or

obligor has the burden of establishing that the amount of proceeds of the

disposition is significantly below the range of prices that a complying

disposition to a person other than the secured party, a person related to the

secured party, or a secondary obligor would have brought.

(b) The

limitation of the rules in subsection (a) to transactions other than consumer

transactions is intended to leave to the court the determination of the proper

rules in consumer transactions. The court may not infer from that limitation

the nature of the proper rule in consumer transactions and may continue to

apply established approaches. (Added 1999, No. 106 (Adj. Sess.), § 2, eff. July

1, 2001.)