§ 10:9-616 — Explanation of calculation of surplus or deficiency

§9-616. Explanation of calculation of surplus or deficiency
(a) Definitions. 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 this Section 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 R.S. 10:9-610.
(b) Explanation of calculation. In a consumer-goods transaction in which the debtor
is entitled to a surplus or a consumer obligor is liable for a deficiency under R.S. 10:9-615,
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 days after receipt of a request; or
(2) in the case of a consumer obligor who is liable for a deficiency, within fourteen
days after receipt of a request, send to the consumer obligor a record waiving the secured
party's right to a deficiency.
(c) Required information. To comply with Subparagraph (a)(1)(B) of this Section,
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 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 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 which 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 which
are not reflected in the amount in Paragraph (1); and
(6) the amount of the surplus or deficiency.
(d) Substantial compliance. 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) Charges for responses. A debtor or consumer obligor is entitled without charge
to one response to a request under this Section during any six-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 for each additional response.

Legislative History

Acts 2001, No. 128, §1, eff. July 1, 2001; Acts 2024, No. 773, §1.