Section 9--626. Action in Which Deficiency or Surplus is in Issue  


Latest version.
  • (a) Applicable  rules  if amount of deficiency or surplus is in issue.
      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) Non-consumer transactions; no inference.  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.