70C-7-101 - Restriction on deficiency judgments in consumer credit sales. - Utah Statutes

70C-7-101. Restriction on deficiency judgments in consumer credit sales.
(1) If a seller repossesses or voluntarily accepts the surrender or return of goods whichwere the subject of a consumer credit sale and in which the seller has a security interest to securea debt arising from the sale of goods or services or a combined sale of goods and services, andthe cash price of the sale was $3,000 or less, any debt remaining from the sale shall be fullysatisfied and the seller has no further obligation to the buyer with respect to the goods taken oraccepted.
(2) If the seller brings an action against the buyer for a debt arising from a consumercredit sale of goods or services, when under this section the creditor would not be entitled to adeficiency judgment if it repossessed the collateral, and obtains judgment:
(a) it may not repossess the collateral; and
(b) the collateral is not subject to levy or sale on execution or similar proceedingspursuant to the judgment.
(3) This section does not apply if the goods which were the subject of the sale and whichsecured a debt arising from a consumer credit sale are damaged to a significant degree after thegoods are delivered to the buyer through no fault of the creditor. Subsection (2) does not apply if,after default and demand, the buyer has wrongfully failed to make the collateral available to thecreditor.

Enacted by Chapter 159, 1985 General Session