§ 9-625 — Remedies for Secured Party's Failure to Comply with Article

Section 9--625. Remedies for Secured Party's Failure to Comply with\n Article.\n (a) Judicial orders concerning noncompliance. If it is established\nthat a secured party is not proceeding in accordance with this article,\na court may order or restrain collection, enforcement, or disposition of\ncollateral on appropriate terms and conditions.\n (b) Damages for noncompliance. Subject to subsections (c), (d), and\n(f), a person is liable for damages in the amount of any loss caused by\na failure to comply with this article. Loss caused by a failure to\ncomply may include loss resulting from the debtor's inability to obtain,\nor increased costs of, alternative financing.\n (c) Persons entitled to recover damages; statutory damages if\ncollateral is consumer goods. Except as otherwise provided in Section\n9--628:\n (1) a person that, at the time of the failure, was a debtor, was\n an obligor, or held a security interest in or other lien on\n the collateral may recover damages under subsection (b) for\n its loss; and\n (2) if the collateral is consumer goods, a person that was a\n debtor or a secondary obligor at the time a secured party\n failed to comply with this part may recover for that failure\n in any event an amount not less than the credit service\n charge plus 10 percent of the principal amount of the\n obligation or the time-price differential plus 10 percent of\n the cash price.\n (d) Recovery when deficiency eliminated or reduced. A debtor whose\ndeficiency is eliminated under Section 9--626 may recover damages for\nthe loss of any surplus. However, a debtor or secondary obligor whose\ndeficiency is eliminated or reduced under Section 9--626 may not\notherwise recover under subsection (b) for noncompliance with the\nprovisions of this part relating to collection, enforcement,\ndisposition, or acceptance.\n (e) Statutory damages: noncompliance with specified provisions. In\naddition to any damages recoverable under subsection (b), the debtor,\nconsumer obligor, or person named as a debtor in a filed record, as\napplicable, may recover five hundred dollars in each case from a person\nthat:\n (1) fails to comply with Section 9--208;\n (2) fails to comply with Section 9--209;\n (3) files a record that the person is not entitled to file under\n Section 9--509 (a);\n (4) fails to cause the secured party of record to file or send a\n termination statement as required by Section 9--513 (a), (c),\n or (e);\n (5) fails to comply with Section 9--616 (b) (1) and whose failure\n is part of a pattern, or consistent with a practice, of\n noncompliance; or\n (6) fails to comply with Section 9--616 (b) (2).\n (f) Statutory damages: noncompliance with Section 9--210. A debtor or\nconsumer obligor may recover damages under subsection (b) and, in\naddition, five hundred dollars in each case from a person that, without\nreasonable cause, fails to comply with a request under Section 9--210. A\nrecipient of a request under Section 9--210 which never claimed an\ninterest in the collateral or obligations that are the subject of a\nrequest under that section has a reasonable excuse for failure to comply\nwith the request within the meaning of this subsection.\n (g) Limitation of security interest: noncompliance with Section\n9--210. If a secured party fails to comply with a request regarding a\nlist of collateral or a statement of account under Section 9--210, the\nsecured party may claim a security interest only as shown in the list or\nstatement included in the request as against a person that is reasonably\nmisled by the failure.\n