44-5501. Restrictions
A. This section applies to a consumer credit sale of goods or services.
B. Notwithstanding any agreement to the contrary, if the seller or his assignee
retakes goods which were the subject of the sale, the buyer shall not be personally
liable for the unpaid balance of the price if the sales price were one thousand dollars
or less. If the fair market value of retaken goods exceeds the unpaid balance, the buyer
shall be entitled to the difference between the unpaid balance, after first deducting all
unearned finance charges, and the fair market value of the goods at the time of retaking,
less the seller's or assignee's reasonable costs and expenses as provided in title 47,
chapter 9, article 6. However, the buyer may be liable in damages to the seller or his
assignee if the buyer has wrongfully damaged the collateral or if, after default and
demand, the buyer has wrongfully failed to make the collateral available to the seller or
his assignee.
C. Neither the seller of consumer goods or services nor his assignee may take any
other security for a consumer credit sale other than (1) a security interest in goods
sold or as to which services have been rendered and (2) in the realty to which such goods
may be affixed. If the seller or assignee elects not to retake the goods, but brings an
action for the unpaid balance, the goods may not thereafter be retaken and are not
subject to judicial process to enforce any judgment obtained therein.
D. "Fair market value" means the price arrived at in good faith which a
knowledgeable and willing buyer would pay and a knowledgeable and willing seller would
ask for the goods in question. "Good faith" shall be defined as set forth in section
47-1201.
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