400.9-626. Action in which deficiency or surplus is in issue.

MISSOURI STATUTES AND CODES

400.9-626. Action in which deficiency or surplus is in issue.

Action in which deficiency or surplus is in issue.

400.9-626. (a) In an action arising from a transaction, other than aconsumer transaction, in which the amount of a deficiency or surplus is inissue, the following rules apply:

(1) A secured party need not prove compliance with the provisions ofthis part relating to collection, enforcement, disposition, or acceptanceunless the debtor or a secondary obligor places the secured party'scompliance in issue.

(2) If the secured party's compliance is placed in issue, the securedparty has the burden of establishing that the collection, enforcement,disposition, or acceptance was conducted in accordance with this part.

(3) Except as otherwise provided in section 400.9-628, if a securedparty fails to prove that the collection, enforcement, disposition, oracceptance was conducted in accordance with the provisions of this partrelating to collection, enforcement, disposition, or acceptance, theliability of a debtor or a secondary obligor for a deficiency is limited toan amount by which the sum of the secured obligation, expenses, andattorney's fees exceeds the greater of:

(A) The proceeds of the collection, enforcement, disposition, oracceptance; or

(B) The amount of proceeds that would have been realized had thenoncomplying secured party proceeded in accordance with the provisions ofthis part relating to collection, enforcement, disposition, or acceptance.

(4) For purposes of paragraph (3)(B), the amount of proceeds thatwould have been realized is equal to the sum of the secured obligation,expenses, and attorney's fees unless the secured party proves that theamount is less than that sum.

(5) If a deficiency or surplus is calculated under section400.9-615(f), the debtor or obligor has the burden of establishing that theamount of proceeds of the disposition is significantly below the range ofprices that a complying disposition to a person other than the securedparty, a person related to the secured party, or a secondary obligor wouldhave brought.

(b) The limitation of the rules in subsection (a) to transactionsother than consumer transactions is intended to leave to the court thedetermination of the proper rules in consumer transactions. The court maynot infer from that limitation the nature of the proper rule in consumertransactions and may continue to apply established approaches.