§ 26-1-9.1-616 — Explanation of calculation of surplus or deficiency

Indiana § 26-1-9.1-616

• Jurisdiction: Indiana
• Title 26: COMMERCIAL LAW
• Art. 1: UNIFORM COMMERCIAL CODE
• Ch. 9.1: Secured Transactions

Text

(a) As used in this section:
(1) "Explanation" means a record that:
(A) states the amount of the surplus or deficiency;
(B) provides an explanation in accordance with subsection (c)
of how the secured party calculated the surplus or deficiency;
(C) states, if applicable, that future debits, credits, charges,
including additional credit service charges or interest, rebates,
and expenses may affect the amount of the surplus or
deficiency; and
(D) provides a telephone number or mailing address from
which additional information concerning the transaction is
available.
(2) "Request" means a record:
(A) signed by a debtor or consumer obligor;
(B) requesting that the recipient provide an explanation; and
(C) sent after disposition of the collateral under IC 26-1-9.1-610.
(b) In a consumer-goods transaction in which the debtor is entitled
to a surplus or a consumer obligor is liable for a deficiency under IC 26-1-9.1-615, the secured party shall:
(1) send an explanation to the debtor or consumer obligor, as
applicable, after the disposition and:
(A) before or when the secured party accounts to the debtor and
pays any surplus or first makes demand in a record on the
consumer obligor after the disposition for payment of the
deficiency; and
(B) within fourteen (14) days after receipt of a request; or
(2) in the case of a consumer obligor who is liable for a
deficiency, within fourteen (14) days after receipt of a request,
send to the consumer obligor a record waiving the secured party's
right to a deficiency.
(c) To comply with subsection (a)(1)(B), an explanation must
provide the following information in the following order:
(1) the aggregate amount of obligations secured by the security
interest under which the disposition was made, and, if the amount
reflects a rebate of unearned interest or credit service charge, an
indication of that fact, calculated as of a specified date:
(A) if the secured party takes or receives possession of the
collateral after default, not more than thirty-five (35) days
before the secured party takes or receives possession; or
(B) if the secured party takes or receives possession of the
collateral before default or does not take possession of the
collateral, not more than thirty-five (35) days before the
disposition;
(2) the amount of proceeds of the disposition;
(3) the aggregate amount of the obligations after deducting the
amount of proceeds;
(4) the amount, in the aggregate or by type, and types of expenses,
including expenses of retaking, holding, preparing for disposition,
processing, and disposing of the collateral, and attorney's fees
secured by the collateral that are known to the secured party and
relate to the current disposition;
(5) the amount, in the aggregate or by type, and types of credits,
including rebates of interest or credit service charges, to which
the obligor is known to be entitled and that are not reflected in the
amount in paragraph (1); and
(6) the amount of the surplus or deficiency.
(d) A particular phrasing of the explanation is not required. An
explanation complying substantially with the requirements of
subsection (a) is sufficient, even if it includes minor errors that are not
seriously misleading.
(e) A debtor or consumer obligor is entitled without charge to one
(1) response to a request under this section during any six (6) month
period in which the secured party did not send to the debtor or
consumer obligor an explanation pursuant to subsection (b)(1). The
secured party may require payment of a charge not exceeding
twenty-five dollars ($25) for each additional response.

Legislative History

As added by P.L.57-2000, SEC.45. Amended by P.L.199-2023, SEC.83.