16a-5-103.(UCCC) Restrictions on deficiency
judgments.
(1) This section applies to a deficiency on a consumer credit sale of
goods or services and on a consumer loan in which the lender is subject to
defenses arising from sales (K.S.A. 16a-3-405, and
amendments thereto); a consumer is not liable
for a deficiency unless the creditor has disposed of the goods in good
faith and in a commercially reasonable manner.
(2) If the seller repossesses or voluntarily accepts surrender of goods
which were the subject of the sale and in which he has a security interest,
the buyer is not personally liable to the seller for the unpaid balance of
the debt arising from the sale of a commercial unit of goods of which the
cash sale price was $1,000 or less,
and the seller
is not obligated to resell the collateral unless the buyer has paid 60%
or more of the cash price and has not signed after
default a
statement renouncing his rights in the collateral.
(3) If the seller repossesses or voluntarily accepts surrender of goods
which were not the subject of the sale but in which the seller
has a security
interest to secure a debt arising from a sale of goods or services or a
combined sale of goods and services and the cash price of the sale was
$1,000 or less, the buyer is not
personally liable to
the seller for the unpaid balance of the debt arising from the sale, and
the seller's duty to dispose of the collateral is governed by the
provisions on disposition of collateral (K.S.A.
84-9-610, and amendments thereto) of the uniform
commercial code.
(4) If the lender takes possession or voluntarily accepts surrender of
goods in which he has a security interest to secure a debt arising from a
consumer loan in which the lender is subject to defenses arising from sales
(K.S.A. 16a-3-405, and amendments thereto) and the
net proceeds of the loan paid
to or for the
benefit of the debtor were $1,000
or less, the
debtor is not personally liable to the lender for the unpaid balance of the
debt arising from the loan and the lender's duty to dispose of the
collateral is governed by the provisions on disposition of collateral
(K.S.A. 84-9-610, and amendments thereto) of the
uniform commercial code.
(5) For the purpose of determining the unpaid balance of consolidated
debts or debts pursuant to open end credit, the allocation of payments to a
debt shall be determined in the same manner as provided for determining the
amount of debt secured by various security interests (K.S.A. 16a-3-303, and
amendments thereto).
(6) The consumer may be liable in damages to the creditor if the
consumer has wrongfully damaged the collateral or if, after default and
demand, the consumer has wrongfully failed to make the collateral available
to the creditor.
(7) If the creditor elects to bring an action against the consumer for a
debt arising from a consumer credit sale of goods or services or from a
consumer loan in which the lender is subject to defenses arising from sales
(K.S.A. 16a-3-405, and amendments thereto), when
under this section the creditor would not be entitled to a
deficiency judgment if the creditor took possession of the
collateral, and obtains
judgment:
(a) The creditor may not take possession of the collateral,
and
(b) the collateral is not subject to levy or sale on execution or
similar proceedings pursuant to the judgment.
History: L. 1973, ch. 85, § 82;
L. 2005, ch. 144, § 16; July 1.
16a-5-103.(UCCC) Restrictions on deficiency
judgments.
(1) This section applies to a deficiency on a consumer credit sale of
goods or services and on a consumer loan in which the lender is subject to
defenses arising from sales (K.S.A. 16a-3-405, and
amendments thereto); a consumer is not liable
for a deficiency unless the creditor has disposed of the goods in good
faith and in a commercially reasonable manner.
(2) If the seller repossesses or voluntarily accepts surrender of goods
which were the subject of the sale and in which he has a security interest,
the buyer is not personally liable to the seller for the unpaid balance of
the debt arising from the sale of a commercial unit of goods of which the
cash sale price was $1,000 or less,
and the seller
is not obligated to resell the collateral unless the buyer has paid 60%
or more of the cash price and has not signed after
default a
statement renouncing his rights in the collateral.
(3) If the seller repossesses or voluntarily accepts surrender of goods
which were not the subject of the sale but in which the seller
has a security
interest to secure a debt arising from a sale of goods or services or a
combined sale of goods and services and the cash price of the sale was
$1,000 or less, the buyer is not
personally liable to
the seller for the unpaid balance of the debt arising from the sale, and
the seller's duty to dispose of the collateral is governed by the
provisions on disposition of collateral (K.S.A.
84-9-610, and amendments thereto) of the uniform
commercial code.
(4) If the lender takes possession or voluntarily accepts surrender of
goods in which he has a security interest to secure a debt arising from a
consumer loan in which the lender is subject to defenses arising from sales
(K.S.A. 16a-3-405, and amendments thereto) and the
net proceeds of the loan paid
to or for the
benefit of the debtor were $1,000
or less, the
debtor is not personally liable to the lender for the unpaid balance of the
debt arising from the loan and the lender's duty to dispose of the
collateral is governed by the provisions on disposition of collateral
(K.S.A. 84-9-610, and amendments thereto) of the
uniform commercial code.
(5) For the purpose of determining the unpaid balance of consolidated
debts or debts pursuant to open end credit, the allocation of payments to a
debt shall be determined in the same manner as provided for determining the
amount of debt secured by various security interests (K.S.A. 16a-3-303, and
amendments thereto).
(6) The consumer may be liable in damages to the creditor if the
consumer has wrongfully damaged the collateral or if, after default and
demand, the consumer has wrongfully failed to make the collateral available
to the creditor.
(7) If the creditor elects to bring an action against the consumer for a
debt arising from a consumer credit sale of goods or services or from a
consumer loan in which the lender is subject to defenses arising from sales
(K.S.A. 16a-3-405, and amendments thereto), when
under this section the creditor would not be entitled to a
deficiency judgment if the creditor took possession of the
collateral, and obtains
judgment:
(a) The creditor may not take possession of the collateral,
and
(b) the collateral is not subject to levy or sale on execution or
similar proceedings pursuant to the judgment.
History: L. 1973, ch. 85, § 82;
L. 2005, ch. 144, § 16; July 1.
16a-5-103.(UCCC) Restrictions on deficiency
judgments.
(1) This section applies to a deficiency on a consumer credit sale of
goods or services and on a consumer loan in which the lender is subject to
defenses arising from sales (K.S.A. 16a-3-405, and
amendments thereto); a consumer is not liable
for a deficiency unless the creditor has disposed of the goods in good
faith and in a commercially reasonable manner.
(2) If the seller repossesses or voluntarily accepts surrender of goods
which were the subject of the sale and in which he has a security interest,
the buyer is not personally liable to the seller for the unpaid balance of
the debt arising from the sale of a commercial unit of goods of which the
cash sale price was $1,000 or less,
and the seller
is not obligated to resell the collateral unless the buyer has paid 60%
or more of the cash price and has not signed after
default a
statement renouncing his rights in the collateral.
(3) If the seller repossesses or voluntarily accepts surrender of goods
which were not the subject of the sale but in which the seller
has a security
interest to secure a debt arising from a sale of goods or services or a
combined sale of goods and services and the cash price of the sale was
$1,000 or less, the buyer is not
personally liable to
the seller for the unpaid balance of the debt arising from the sale, and
the seller's duty to dispose of the collateral is governed by the
provisions on disposition of collateral (K.S.A.
84-9-610, and amendments thereto) of the uniform
commercial code.
(4) If the lender takes possession or voluntarily accepts surrender of
goods in which he has a security interest to secure a debt arising from a
consumer loan in which the lender is subject to defenses arising from sales
(K.S.A. 16a-3-405, and amendments thereto) and the
net proceeds of the loan paid
to or for the
benefit of the debtor were $1,000
or less, the
debtor is not personally liable to the lender for the unpaid balance of the
debt arising from the loan and the lender's duty to dispose of the
collateral is governed by the provisions on disposition of collateral
(K.S.A. 84-9-610, and amendments thereto) of the
uniform commercial code.
(5) For the purpose of determining the unpaid balance of consolidated
debts or debts pursuant to open end credit, the allocation of payments to a
debt shall be determined in the same manner as provided for determining the
amount of debt secured by various security interests (K.S.A. 16a-3-303, and
amendments thereto).
(6) The consumer may be liable in damages to the creditor if the
consumer has wrongfully damaged the collateral or if, after default and
demand, the consumer has wrongfully failed to make the collateral available
to the creditor.
(7) If the creditor elects to bring an action against the consumer for a
debt arising from a consumer credit sale of goods or services or from a
consumer loan in which the lender is subject to defenses arising from sales
(K.S.A. 16a-3-405, and amendments thereto), when
under this section the creditor would not be entitled to a
deficiency judgment if the creditor took possession of the
collateral, and obtains
judgment:
(a) The creditor may not take possession of the collateral,
and
(b) the collateral is not subject to levy or sale on execution or
similar proceedings pursuant to the judgment.
History: L. 1973, ch. 85, § 82;
L. 2005, ch. 144, § 16; July 1.