400.9-616. Explanation of calculation of surplus or deficiency. - Missouri Statutes

Explanation of calculation of surplus or deficiency.

400.9-616. (a) In this section:

(1) "Explanation" means a writing that:

(A) States the amount of the surplus or deficiency;

(B) Provides an explanation in accordance with subsection (c) of howthe secured party calculated the surplus or deficiency;

(C) States, if applicable, that future debits, credits, charges,including additional credit service charges or interest, rebates, andexpenses may affect the amount of the surplus or deficiency; and

(D) Provides a telephone number or mailing address from whichadditional information concerning the transaction is available.

(2) "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 400.9-610.

(b) In a consumer-goods transaction in which the debtor is entitledto a surplus or a consumer obligor is liable for a deficiency under section400.9-615, the secured party shall:

(1) Send an explanation to the debtor or consumer obligor, asapplicable, after the disposition and:

(A) Before or when the secured party accounts to the debtor and paysany surplus or first makes written demand on the consumer obligor after thedisposition 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 consumerobligor a record waiving the secured party's right to a deficiency.

(c) To comply with subsection (a)(1)(B), a writing must provide thefollowing information in the following order:

(1) The aggregate amount of obligations secured by the securityinterest under which the disposition was made, and, if the amount reflectsa rebate of unearned interest or credit service charge, an indication ofthat fact, calculated as of a specified date:

(A) If the secured party takes or receives possession of thecollateral after default, not more than thirty-five days before the securedparty takes or receives possession; or

(B) If the secured party takes or receives possession of thecollateral 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 theamount 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 bythe collateral which are known to the secured party and relate to thecurrent disposition;

(5) The amount, in the aggregate or by type, and types of credits,including rebates of interest or credit service charges, to which theobligor is known to be entitled and which are not reflected in the amountin paragraph (1); and

(6) The amount of the surplus or deficiency.

(d) A particular phrasing of the explanation is not required. Anexplanation complying substantially with the requirements of subsection (a)is sufficient, even if it includes minor errors that are not seriouslymisleading.

(e) A debtor or consumer obligor is entitled without charge to oneresponse to a request under this section during any six-month period inwhich the secured party did not send to the debtor or consumer obligor anexplanation pursuant to subsection (b)(1). The secured party may requirepayment of a charge not exceeding twenty-five dollars for each additionalresponse.

(L. 2001 S.B. 288)

Effective 7-01-01