This text of Indiana § 26-1-9.1-625 (Remedies for secured party's failure to comply with chapter) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
(a)If it is established that a secured party
is not proceeding in accordance with IC 26-1-9.1, a court may order or
restrain collection, enforcement, or disposition of collateral on
appropriate terms and conditions.
(b)Subject to subsections (c), (d), and (f), a person is liable for
damages in the amount of any loss caused by a failure to comply with
IC 26-1-9.1. Loss caused by a failure to comply may include loss
resulting from the debtor's inability to obtain, or increased costs of,
alternative financing.
(c)Except as otherwise provided in IC 26-1-9.1-628:
(1)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 (b) for its loss; and
(2)if the collateral is consumer
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(a) If it is established that a secured party
is not proceeding in accordance with IC 26-1-9.1, a court may order or
restrain collection, enforcement, or disposition of collateral on
appropriate terms and conditions.
(b) Subject to subsections (c), (d), and (f), a person is liable for
damages in the amount of any loss caused by a failure to comply with
IC 26-1-9.1. Loss caused by a failure to comply may include loss
resulting from the debtor's inability to obtain, or increased costs of,
alternative financing.
(c) Except as otherwise provided in IC 26-1-9.1-628:
(1) 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 (b) for its loss; and
(2) 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 IC 26-1-9.1-601 through IC 26-1-9.1-628 may recover for
that failure in any event an amount not less than the credit service
charge plus ten percent (10%) of the principal amount of the
obligation or the time-price differential plus ten percent (10%) of
the cash price.
(d) A debtor whose deficiency is eliminated under IC 26-1-9.1-626
may recover damages for the loss of any surplus. However, a debtor or
secondary obligor whose deficiency is eliminated or reduced under IC 26-1-9.1-626 may not otherwise recover under subsection (b) for
noncompliance with the provisions of IC 26-1-9.1-601 through IC 26-1-9.1-628 relating to collection, enforcement, disposition, or
acceptance.
(e) In addition to any damages recoverable under subsection (b), the
debtor, consumer obligor, or person named as a debtor in a filed record,
as applicable, may recover five hundred dollars ($500) in each case
from a person that:
(1) fails to comply with IC 26-1-9.1-208;
(2) fails to comply with IC 26-1-9.1-209;
(3) files a record that the person is not entitled to file under IC 26-1-9.1-509(a);
(4) fails to cause the secured party of record to file or send a
termination statement as required by IC 26-1-9.1-513(a) or IC 26-1-9.1-513(c);
(5) fails to comply with IC 26-1-9.1-616(b)(1) and whose failure
is part of a pattern or consistent with a practice, of
noncompliance; or
(6) fails to comply with IC 26-1-9.1-616(b)(2).
(f) A debtor or consumer obligor may recover damages under
subsection (b) and, in addition, five hundred dollars ($500) in each
case from a person that, without reasonable cause, fails to comply with
a request under IC 26-1-9.1-210. A recipient of a request under IC 26-1-9.1-210 that 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.
(g) If a secured party fails to comply with a request regarding a list
of collateral or a statement of account under IC 26-1-9.1-210, 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.