§490:9-616 - Explanation of calculation of surplus or deficiency.

§490:9-616 Explanation of calculation of
surplus or deficiency. (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 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

(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 490:9-615, 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.

(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's fees
secured by the collateral which 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 which are not reflected in the
amount in paragraph (1); 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) 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)(1). The secured
party may require payment of a charge not exceeding $25 for each additional
response. [L 2000, c 241, pt of §1]