2006 Minnesota Code
Chapters 324 - 338 Trade Regulations, Consumer Protection
Chapter 336 Uniform Commercial Code
Section 336.9-626 ACTION IN WHICH DEFICIENCY OR SURPLUS IS IN ISSUE.

336.9-626 ACTION IN WHICH DEFICIENCY OR SURPLUS IS IN ISSUE.
(a) Applicable rules if amount of deficiency or surplus is in issue. In an action arising
from a transaction, other than a consumer transaction, in which the amount of a deficiency or
surplus is in issue, the following rules apply:
(1) A secured party need not prove compliance with the provisions of this part relating to
collection, enforcement, disposition, or acceptance unless the debtor or a secondary obligor
places the secured party's compliance in issue.
(2) If the secured party's compliance is placed in issue, the secured party 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 336.9-628, if a secured party fails to prove that
the collection, enforcement, disposition, or acceptance was conducted in accordance with the
provisions of this part relating to collection, enforcement, disposition, or acceptance, the liability
of a debtor or a secondary obligor for a deficiency is limited to an amount by which the sum of the
secured obligation, expenses, and attorneys fees exceeds the greater of:
(A) the proceeds of the collection, enforcement, disposition, or acceptance; or
(B) the amount of proceeds that would have been realized had the noncomplying secured
party proceeded in accordance with the provisions of this part relating to collection, enforcement,
disposition, or acceptance.
(4) For purposes of paragraph (3)(B), the amount of proceeds that would have been realized
is equal to the sum of the secured obligation, expenses, and attorneys fees unless the secured party
proves that the amount is less than that sum.
(5) If a deficiency or surplus is calculated under section 336.9-615(f), the debtor or obligor
has the burden of establishing that the amount of proceeds of the disposition is significantly below
the range of prices that a complying disposition to a person other than the secured party, a person
related to the secured party, or a secondary obligor would have brought.
(b) Nonconsumer transactions; no inference. The limitation of the rules in subsection (a) to
transactions other than consumer transactions is intended to leave to the court the determination of
the proper rules in consumer transactions. The court may not infer from that limitation the nature
of the proper rule in consumer transactions and may continue to apply established approaches.
History: 2000 c 399 art 1 s 127