§ 34.1-9-616 — Explanation of calculation of surplus or deficiency

(a) In this section:
(i) "Explanation" means a writing that:
(A) States the amount of the surplus or
deficiency;
(B) Provides an explanation in accordance with
subsection (c) 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.
(ii) "Request" means a record:
(A) Authenticated by a debtor or consumer
obligor;
(B) Requesting that the recipient provide an
explanation; and
(C) Sent after disposition of the collateral
under section 34.1-9-610.
(b) In a consumer-goods transaction in which the debtor is
entitled to a surplus or a consumer obligor is liable for a
deficiency under section 34.1-9-615, the secured party shall:
(i) 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 written demand on
the consumer obligor after the disposition for payment of the
deficiency; and
(B) Within fourteen (14) days after receipt of a
request; or
(ii) In the case of a consumer obligor who is liable
for a deficiency, within fourteen (14) days after receipt of a
request, send to the consumer obligor a record waiving the
secured party's right to a deficiency.
(c) To comply with subparagraph (a)(i)(B), a writing must
provide the following information in the following order:
(i) 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 (35) 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 (35)
days before the disposition.
(ii) The amount of proceeds of the disposition;
(iii) The aggregate amount of the obligations after
deducting the amount of proceeds;
(iv) 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;
(v) 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 (i); and
(vi) The amount of the surplus or deficiency.
(d) 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) A debtor or consumer obligor is entitled without
charge to one (1) response to a request under this section
during any six (6) month period in which the secured party did
not send to the debtor or consumer obligor an explanation
pursuant to paragraph (b)(i). The secured party may require
payment of a charge not exceeding twenty-five dollars ($25.00)
for each additional response.