400.9-625. Remedies for secured party's failure to comply with article. - Missouri Statutes

Remedies for secured party's failure to comply with article.

400.9-625. (a) If it is established that a secured party is notproceeding in accordance with this article, a court may order or restraincollection, enforcement, or disposition of collateral on appropriate termsand conditions.

(b) Subject to subsections (c), (d), and (f), a person is liable fordamages in the amount of any loss caused by a failure to comply with thisarticle. Loss caused by a failure to comply may include loss resultingfrom the debtor's inability to obtain, or increased costs of, alternativefinancing.

(c) Except as otherwise provided in section 400.9-628:

(1) A person that, at the time of the failure, was a debtor, was anobligor, or held a security interest in or other lien on the collateral mayrecover damages under subsection (b) for its loss; and

(2) If the collateral is consumer goods, a person that was a debtoror a secondary obligor at the time a secured party failed to comply withthis part may recover for that failure in any event an amount not less thanthe credit service charge plus ten percent of the principal amount of theobligation or the time-price differential plus ten percent of the cashprice.

(d) A debtor whose deficiency is eliminated under section 400.9-626may recover damages for the loss of any surplus. However, a debtor orsecondary obligor whose deficiency is eliminated or reduced under section400.9-626 may not otherwise recover under subsection (b) for noncompliancewith the provisions of this part relating to collection, enforcement,disposition, or acceptance.

(e) In addition to any damages recoverable under subsection (b), thedebtor, consumer obligor, or person named as a debtor in a filed record, asapplicable, may recover five hundred dollars in each case from a personthat:

(1) Fails to comply with section 400.9-208;

(2) Fails to comply with section 400.9-209;

(3) Files a record that the person is not entitled to file undersection 400.9-509(a);

(4) Fails to cause the secured party of record to file or send atermination statement as required by section 400.9-513(a) or (c);

(5) Fails to comply with section 400.9-616(b)(1) and whose failure ispart of a pattern, or consistent with a practice, of noncompliance; or

(6) Fails to comply with section 400.9-616(b)(2).

(f) A debtor or consumer obligor may recover damages under subsection(b) and, in addition, five hundred dollars in each case from a person that,without reasonable cause, fails to comply with a request under section400.9-210. A recipient of a request under section 400.9-210 which neverclaimed an interest in the collateral or obligations that are the subjectof a request under that section has a reasonable excuse for failure tocomply with the request within the meaning of this subsection.

(g) If a secured party fails to comply with a request regarding alist of collateral or a statement of account under section 400.9-210, thesecured party may claim a security interest only as shown in the list orstatement included in the request as against a person that is reasonablymisled by the failure.

(h) This section shall apply on and after January 1, 2003.

(L. 2001 S.B. 288, A.L. 2002 S.B. 895)