US Uniform Commercial Code Article 9 Secured Transactions
Part 6: default, collection, repossession, disposition, acceptance of collateral, redemption and remedies – US Uniform Commercial Code Article 9 Secured Transactions

US Uniform Commercial Code Article 9 Secured Transactions 9-625-9-628-remedies-non-compliance: Comply with Part 6 because non-compliance exposes the secured party to court orders, actual damages, the statutory consumer-goods minimum, five hundred dollar penalties for listed failures, and loss of the deficiency under the rebuttable presumption rule

What does 9-625-9-628-remedies-non-compliance require?

Where a secured party breaches Article 9 a court may direct or halt collection, enforcement or disposition; anyone harmed may recover damages for the loss the breach caused, including the loss of, or higher cost of, replacement financing; in a consumer-goods transaction the debtor or secondary obligor may recover at least the credit service charge plus ten per cent of the principal, or the time price differential plus ten per cent of the cash price; and five hundred dollars is recoverable for each failure to comply with the control-release, account-debtor release, accounting, termination and consumer explanation duties and for filing an unauthorised record (section 9-625). In a non-consumer transaction, where the secured party's compliance is put in issue the secured party must prove that collection, enforcement, disposition or acceptance complied with Part 6; if it cannot, the obligor's liability for a deficiency is limited to the amount by which the secured obligation exceeds the greater of the proceeds or the amount that a complying disposition would have produced (the rebuttable presumption rule), while consumer transactions are left to the courts (section 9-626). Commercial reasonableness is judged by the standards of section 9-627 (a lower price alone is not enough; usual manner on a recognised market, current price on such a market, or conformity with reasonable commercial practice of dealers in that kind of property is sufficient), and there is no liability to a debtor or obligor the secured party did not know of, nor for more than the statutory measures where it acted reasonably (section 9-628).

Maintained by Gerard Blokdyk

Other controls in Part 6: default, collection, repossession, disposition, acceptance of collateral, redemption and remedies – US Uniform Commercial Code Article 9 Secured Transactions

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