Subpart 2. 
Noncompliance with Article



 



§490:9-625  Remedies for secured party's
failure to comply with article.  (a)  If it is established that a secured
party is not proceeding in accordance with this article, a court may order or
restrain collection, enforcement, or disposition of collateral on appropriate
terms and conditions.



(b)  Subject to subsections (c), (d), and (f),
a person is liable for damages in the amount of any loss caused by a failure to
comply with this article.  Loss caused by a failure to comply may include loss
resulting from the debtor's inability to obtain, or increased costs of,
alternative financing.



(c)  Except as otherwise provided in section
490:9-628:



(1)  A person that, at the time of the failure, was a
debtor, was an obligor, or held a security interest in or other lien on the
collateral may recover damages under subsection (b) for its loss; and



(2)  If the collateral is consumer goods, a person
that was a debtor or a secondary obligor at the time a secured party failed to
comply with this part may recover for that failure in any event an amount not
less than the credit service charge plus ten per cent of the principal amount
of the obligation or the time-price differential plus ten per cent of the cash
price.



(d)  A debtor whose deficiency is eliminated
under section 490:9-626 may recover damages for the loss of any surplus. 
However, a debtor or secondary obligor whose deficiency is eliminated or
reduced under section 490:9-626 may not otherwise recover under subsection (b)
for noncompliance with the provisions of this part relating to collection,
enforcement, disposition, or acceptance.



(e)  In addition to any damages recoverable
under subsection (b), the debtor, consumer obligor, or person named as a debtor
in a filed record, as applicable, may recover $500 in each case from a person
that:



(1)  Fails to comply with section 490:9-208;



(2)  Fails to comply with section 490:9-209;



(3)  Files a record that the person is not entitled to
file under section 490:9-509(a);



(4)  Fails to cause the secured party of record to
file or send a termination statement as required by section 490:9-513(a) or
(c);



(5)  Fails to comply with section 490:9-616(b)(1) and
whose failure is part of a pattern, or consistent with a practice, of noncompliance;
or



(6)  Fails to comply with section 490:9-616(b)(2).



(f)  A debtor or consumer obligor may recover
damages under subsection (b) and, in addition, $500 in each case from a person
that, without reasonable cause, fails to comply with a request under section
490:9-210.  A recipient of a request under section 490:9-210 which never
claimed an interest in the collateral or obligations that are the subject of a
request under that section has a reasonable excuse for failure to comply with
the request within the meaning of this subsection.



(g)  If a secured party fails to comply with a
request regarding a list of collateral or a statement of account under section
490:9-210, the secured party may claim a security interest only as shown in the
list or statement included in the request as against a person that is
reasonably misled by the failure. [L 2000, c 241, pt of §1; am L 2001, c 228,
§12]