US Uniform Commercial Code Article 9 Secured Transactions 9-615-9-616-proceeds-surplus-deficiency-explanation: Apply disposition proceeds in the statutory order, account for surplus and collect only the deficiency the statute allows, and in a consumer-goods transaction send the written explanation of the surplus or deficiency calculation

What does 9-615-9-616-proceeds-surplus-deficiency-explanation require?

Cash proceeds of a disposition go first to the reasonable costs of retaking, holding, preparing and selling the collateral (and attorney's fees where agreed and allowed), then to the secured obligation, then to subordinate security interests and liens whose holders made an authenticated demand before distribution is completed, with a consignor's interest treated as a subordinate interest; the secured party may require proof of a subordinate interest, need not apply non-cash proceeds unless leaving them unapplied would be commercially unreasonable, must account to the debtor for surplus and may recover the deficiency from the obligor, except in sales of receivables; and where the transferee is the secured party, a related person or a secondary obligor and the proceeds are significantly below what a complying disposition to an unrelated party would have brought, the surplus or deficiency is calculated on that higher amount (section 9-615). In a consumer-goods transaction the secured party must send the debtor or consumer obligor a written explanation of how the surplus or deficiency was calculated, after the disposition and before or when it first makes written demand for a deficiency or pays a surplus, or within fourteen days after a request, and the explanation must set out the aggregate obligation, the proceeds, the resulting surplus or deficiency, the expenses and attorney's fees deducted, credits for rebates and the like, and a contact for further information (section 9-616).