§ 9-616 — Explanation of Calculation of Surplus or Deficiency

New York § 9-616

• Jurisdiction: New York
• Law UCC: Uniform Commercial Code
• Part 6: Default
• Subpart 1: Default and Enforcement of Security Interest
• Art. 9: Secured Transactions

Text

Section 9--616. Explanation of Calculation of Surplus or Deficiency.\n * (a) Definitions. In this section:\n (1) "Explanation" means a writing that:\n (A) states the amount of the surplus or deficiency;\n (B) provides an explanation in accordance with subsection (c)\n of how the secured party calculated the surplus or\n deficiency;\n (C) states, if applicable, that future debits, credits,\n charges, including additional credit service charges or\n interest, rebates, and expenses may affect the amount of\n the surplus or deficiency; and\n (D) provides a telephone number or mailing address from which\n additional information concerning the transaction is\n available.\n (2) "Request" means a record:\n (A) authenticated by a debtor or consumer obligor;\n (B) requesting that the recipient provide an explanation; and\n (C) sent after disposition of the collateral under Section\n 9--610.\n * NB Effective until June 3, 2026\n* (a) Definitions. In this section:\n (1) "Explanation" means a record that:\n (A) states the amount of the surplus or deficiency;\n (B) provides an explanation in accordance with subsection (c)\n of how the secured party calculated the surplus or\n deficiency;\n (C) states, if applicable, that future debits, credits,\n charges, including additional credit service charges or\n interest, rebates, and expenses may affect the amount of\n the surplus or deficiency; and\n (D) provides a telephone number or mailing address from which\n additional information concerning the transaction is\n available.\n (2) "Request" means a record:\n (A) signed by a debtor or consumer obligor;\n (B) requesting that the recipient provide an explanation; and\n (C) sent after disposition of the collateral under Section\n 9--610.\n * NB Effective June 3, 2026\n * (b) Explanation of calculation. In a consumer-goods transaction in\nwhich the debtor is entitled to a surplus or a consumer obligor is\nliable for a deficiency under Section 9--615, the secured party shall:\n (1) send an explanation to the debtor or consumer obligor, as\n applicable, after the disposition and:\n (A) before or when the secured party accounts to the debtor\n and pays any surplus or first makes written demand on the\n consumer obligor after the disposition for payment of the\n deficiency; and\n (B) within fourteen days after receipt of a request; or\n (2) in the case of a consumer obligor who is liable for a\n deficiency, within fourteen days after receipt of a request,\n send to the consumer obligor a record waiving the secured\n party's right to a deficiency.\n * NB Effective until June 3, 2026\n*(b) Explanation of calculation. In a consumer-goods transaction in\nwhich the debtor is entitled to a surplus or a consumer obligor is\nliable for a deficiency under Section 9--615, the secured party shall:\n (1) send an explanation to the debtor or consumer obligor, as\n applicable, after the disposition and:\n (A) before or when the secured party accounts to the debtor\n and pays any surplus or first makes demand in a record on\n the consumer obligor after the disposition for payment of\n the deficiency; and\n (B) within fourteen days after receipt of a request; or\n (2) in the case of a consumer obligor who is liable for a\n deficiency, within fourteen days after receipt of a request,\n send to the consumer obligor a record waiving the secured\n party's right to a deficiency.\n * NB Effective June 3, 2026\n (c) Required information. * To comply with subsection (a)(1)(B), a\nwriting must provide the following information in the following order:\n * NB Effective until June 3, 2026\n * To comply with subsection (a)(1)(B), an explanation must\n provide the following information in the following order:\n * NB Effective June 3, 2026\n (1) the aggregate amount of obligations secured by the security\n interest under which the disposition was made, and, if the\n amount reflects a rebate of unearned interest or credit\n service charge, an indication of that fact, calculated as of\n a specified date:\n (A) if the secured party takes or receives possession of the\n collateral after default, not more than thirty-five days\n before the secured party takes or receives possession; or\n (B) if the secured party takes or receives possession of the\n collateral before default or does not take possession of\n the collateral, not more than thirty-five days before the\n disposition;\n (2) the amount of proceeds of the disposition;\n (3) the aggregate amount of the obligations after deducting the\n amount of proceeds;\n (4) the amount, in the aggregate or by type, and types of\n expenses, including expenses of retaking, holding, preparing\n for disposition, processing, and disposing of the collateral,\n and attorney's fees secured by the collateral which are known\n to the secured party and relate to the current disposition;\n (5) the amount, in the aggregate or by type, and types of\n credits, including rebates of interest or credit service\n charges, to which the obligor is known to be entitled and\n which are not reflected in the amount in paragraph (1); and\n (6) the amount of the surplus or deficiency.\n (d) Substantial compliance. A particular phrasing of the explanation\nis not required. An explanation complying substantially with the\nrequirements of subsection (a) is sufficient, even if it includes minor\nerrors that are not seriously misleading.\n (e) Charges for responses. A debtor or consumer obligor is entitled\nwithout charge to one response to a request under this section during\nany six-month period in which the secured party did not send to the\ndebtor or consumer obligor an explanation pursuant to subsection (b)(1).\nThe secured party may require payment of a charge not exceeding 25\ndollars for each additional response.\n