§9-1626. Action in which deficiency or surplus is in issue








(1). 
 
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.





(a). 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. [1999, c. 699, Pt. A, §2 (NEW); 1999, c. 699, Pt. A, §4 (AFF).]











(b). 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. [1999, c. 699, Pt. A, §2 (NEW); 1999, c. 699, Pt. A, §4 (AFF).]











(c). Except as otherwise provided in section 9-1628, 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:



(i) The proceeds of the collection, enforcement, disposition or acceptance; or





(ii) 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. [1999, c. 699, Pt. A, §2 (NEW); 1999, c. 699, Pt. A, §4 (AFF).]














(d). For purposes of paragraph (c), subparagraph (ii), 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. [1999, c. 699, Pt. A, §2 (NEW); 1999, c. 699, Pt. A, §4 (AFF).]











(e). If a deficiency or surplus is calculated under section 9-1615, subsection (6), 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. [1999, c. 699, Pt. A, §2 (NEW); 1999, c. 699, Pt. A, §4 (AFF).]








[
1999, c. 699, Pt. A, §2 (NEW);
1999, c. 699, Pt. A, §4 (AFF)
.]








(2). 
 
In an action arising from a consumer transaction in which the amount of a deficiency
or surplus is in issue, the following rules apply.





(a). If a secured party represents by affidavit that it has complied with the provisions
of this Part relating to collection, enforcement, disposition or acceptance, the secured
party need not further prove compliance unless the debtor or a secondary obligor places
the secured party's compliance in issue. [1999, c. 699, Pt. A, §2 (NEW); 1999, c. 699, Pt. A, §4 (AFF).]











(b). 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. [1999, c. 699, Pt. A, §2 (NEW); 1999, c. 699, Pt. A, §4 (AFF).]











(c). Except as otherwise provided in section 9-1628, 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, neither the debtor nor a secondary obligor is liable for a deficiency. [1999, c. 699, Pt. A, §2 (NEW); 1999, c. 699, Pt. A, §4 (AFF).]








[
1999, c. 699, Pt. A, §2 (NEW);
1999, c. 699, Pt. A, §4 (AFF)
.]





SECTION HISTORY

1999, c. 699, §A2 (NEW).
1999, c. 699, §A4 (AFF).