408.556. Actions arising from default, contents of petition--default judgment requires sworn testimony--recovery of unpaid balances. - Missouri Statutes

Actions arising from default, contents of petition--default judgmentrequires sworn testimony--recovery of unpaid balances.

408.556. 1. In any action brought by a lender against a borrowerarising from default, the petition shall allege the facts of the borrower'sdefault, facts sufficient to show compliance with the provisions ofsections 400.9-601 to 400.9-629, RSMo, which provisions are hereby deemedapplicable to all credit transactions, with respect to any sale or otherdisposition of collateral for the credit transaction, the amount to whichthe lender is entitled, and an indication of how that amount wasdetermined.

2. A default judgment may not be entered in the action in favor ofthe lender unless the petition is verified by the lender, or sworntestimony, by affidavit or otherwise, is adduced showing that the lender isentitled to the relief demanded.

3. If a lender takes possession or voluntarily accepts surrender ofgoods in which the lender has a purchase money security interest to securea credit transaction in the principal amount of less than five hundreddollars, the borrower is not liable to the lender for the unpaid balance.

4. Following any disposition of collateral pursuant to the provisionsof sections 400.9-601 to 400.9-629, RSMo, the lender shall be entitled torecover from the borrower the deficiency, if any, only if the amountfinanced in the transaction was more than five hundred dollars and theamount remaining unpaid at the time of default is three hundred dollars ormore.

(L. 1979 S.B. 305, A.L. 1983 S.B. 70, A.L. 2002 S.B. 895)