§ 41-09-121 — (9-626) Action in which deficiency or surplus is in issue

In an action arising from a transaction in which the amount of a deficiency or surplus is in
issue, the following rules apply:
1. A secured party need not prove compliance with the provisions of this part relating to
collection, enforcement, disposition, or acceptance unless the debtor or a secondary
obligor places the secured party's compliance in issue.
2. If the secured party's compliance is placed in issue, the secured party has the burden
of establishing that the collection, enforcement, disposition, or acceptance was
conducted in accordance with this part.
3. Except as otherwise provided in section 41-09-123, if a secured party fails to prove
that the collection, enforcement, disposition, or acceptance was conducted in
accordance with the provisions of this part relating to collection, enforcement,
disposition, or acceptance, the liability of a debtor or a secondary obligor for a
deficiency is limited to an amount by which the sum of the secured obligation,
expenses, and attorney's fees exceeds the greater of:
a. The proceeds of the collection, enforcement, disposition, or acceptance; or

b. The amount of proceeds that would have been realized had the noncomplying
secured party proceeded in accordance with the provisions of this part relating to
collection, enforcement, disposition, or acceptance.
4. For purposes of subdivision b of subsection 3, the amount of proceeds that would
have been realized is equal to the sum of the secured obligation, expenses, and
attorney's fees unless the secured party proves that the amount is less than that sum.
5. If a deficiency or surplus is calculated under subsection 6 of section 41-09-111, the
debtor or obligor has the burden of establishing that the amount of proceeds of the
disposition is significantly below the range of prices that a complying disposition to a
person other than the secured party, a person related to the secured party, or a
secondary obligor would have brought.