1.Judicial orders concerning noncompliance. 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.
2.Damages for noncompliance. Subject to subsections 3, 4, and 6, a person is liable for
damagesintheamountofanylosscausedbyafailuretocomplywiththisArticle. Losscaused
by a failure to comply may include loss resulting from the debtor’s inability to obtain, or
increased costs of, alternative financing.
3.Persons entitled to recover damages — statutory damages if collateral is consumer
goods. Except as otherwise provided in section 554.9628:
a.a person that, at the time of the failure, was a debtor, was an obligor, or held a security
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1. Judicial orders concerning noncompliance. 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.
2. Damages for noncompliance. Subject to subsections 3, 4, and 6, a person is liable for
damagesintheamountofanylosscausedbyafailuretocomplywiththisArticle. Losscaused
by a failure to comply may include loss resulting from the debtor’s inability to obtain, or
increased costs of, alternative financing.
3. Persons entitled to recover damages — statutory damages if collateral is consumer
goods. Except as otherwise provided in section 554.9628:
a. 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 2 for its loss;
and
b. 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 percent of the principal
amount of the obligation or the time-price differential plus ten percent of the cash price.
4. Recovery when deficiency eliminated or reduced. A debtor whose deficiency is
eliminated under section 554.9626 may recover damages for the loss of any surplus.
However, a debtor or secondary obligor whose deficiency is eliminated or reduced under
section 554.9626 may not otherwise recover under subsection 2 for noncompliance with the
provisions of this part relating to collection, enforcement, disposition, or acceptance.
5. Statutory damages — noncompliance with specified provisions. In addition to any
damages recoverable under subsection 2, the debtor, consumer obligor, or person named as
a debtor in a filed record, as applicable, may recover five hundred dollars in each case from
a person that:
a. fails to comply with section 554.9208;
b. fails to comply with section 554.9209;
c. files a record that the person is not entitled to file under section 554.9509, subsection 1;
d. fails to cause the secured party of record to file or send a termination statement as
required by section 554.9513, subsection 1 or 3;
e. fails to comply with section 554.9616, subsection 2, paragraph “a”, and whose failure
is part of a pattern, or consistent with a practice, of noncompliance; or
f. fails to comply with section 554.9616, subsection 2, paragraph “b”.
6. Statutory damages — noncompliance with section 554.9210. A debtor or consumer
obligor may recover damages under subsection 2 and, in addition, five hundred dollars in
each case from a person that, without reasonable cause, fails to comply with a request under
section 554.9210. A recipient of a request under section 554.9210 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.
7. Limitation of security interest — noncompliance with section 554.9210. If a secured
party fails to comply with a request regarding a list of collateral or a statement of account
under section 554.9210, 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.