47-9616. Explanation of calculation of surplus
or deficiency; definitions


A. In this section:


1. "Explanation" means a writing that:


(a) States the amount of the surplus or deficiency;


(b) Provides an explanation in accordance with subsection C of this section of how
the secured party calculated the surplus or deficiency;


(c) States, if applicable, that future debits, credits, charges, including
additional credit service charges or interest, rebates and expenses may affect the amount
of the surplus or deficiency; and


(d) Provides a telephone number or mailing address from which additional
information concerning the transaction is available.


2. "Request" means a record:


(a) Authenticated by a debtor or consumer obligor;


(b) Requesting that the recipient provide an explanation; and


(c) Sent after disposition of the collateral under section 47-9610.


B. In a consumer goods transaction in which the debtor is entitled to a surplus or
a consumer obligor is liable for a deficiency under section 47-9615, the secured party
shall:


1. Send an explanation to the debtor or consumer obligor, as applicable, after the
disposition and:


(a) Before or when the secured party accounts to the debtor and pays any surplus or
first makes written demand on the consumer obligor after the disposition for payment of
the deficiency; and


(b) Within fourteen days after receipt of a request; or


2. In the case of a consumer obligor who is liable for a deficiency, within
fourteen days after receipt of a request, send to the consumer obligor a record waiving
the secured party's right to a deficiency.


C. To comply with subsection A, paragraph 1, subdivision (b) of this section, a
writing must provide the following information in the following order:


1. The aggregate amount of obligations secured by the security interest under which
the disposition was made, and, if the amount reflects a rebate of unearned interest or
credit service charge, an indication of that fact, calculated as of a specified date:


(a) If the secured party takes or receives possession of the collateral after
default, not more than thirty-five days before the secured party takes or receives
possession; or


(b) If the secured party takes or receives possession of the collateral before
default or does not take possession of the collateral, not more than thirty-five days
before the disposition;


2. The amount of proceeds of the disposition;


3. The aggregate amount of the obligations after deducting the amount of proceeds;


4. The amount, in the aggregate or by type, and types of expenses, including
expenses of retaking, holding, preparing for disposition, processing and disposing of the
collateral, and attorney fees secured by the collateral that are known to the secured
party and relate to the current disposition;


5. The amount, in the aggregate or by type, and types of credits, including rebates
of interest or credit service charges, to which the obligor is known to be entitled and
that are not reflected in the amount in paragraph 1 of this subsection; and


6. The amount of the surplus or deficiency.


D. A particular phrasing of the explanation is not required. An explanation
complying substantially with the requirements of subsection A of this section is
sufficient, even if it includes minor errors that are not seriously misleading.


E. A debtor or consumer obligor is entitled without charge to one response to a
request under this section during any six month period in which the secured party did not
send to the debtor or consumer obligor an explanation pursuant to subsection B, paragraph
1 of this section. The secured party may require payment of a charge not exceeding
twenty-five dollars for each additional response.