2006 New York Code - Explanation Of Calculation Of Surplus Or Deficiency

  Section 9--616. Explanation of Calculation of Surplus or Deficiency.
    (a) Definitions. In this section:
         (1) "Explanation" means a writing that:
             (A) states the amount of the surplus or deficiency;
             (B) provides an explanation in accordance with subsection (c)
                 of  how  the  secured  party  calculated  the  surplus or
             (C) states,  if  applicable,  that  future  debits,  credits,
                 charges,  including  additional credit service charges or
                 interest, rebates, and expenses may affect the amount  of
                 the surplus or deficiency; and
             (D) provides a telephone number or mailing address from which
                 additional  information  concerning  the  transaction  is
         (2) "Request" means a record:
             (A) authenticated by a debtor or consumer obligor;
             (B) requesting that the recipient provide an explanation; and
             (C) sent after disposition of the  collateral  under  Section
    (b) Explanation  of  calculation.  In  a consumer-goods transaction in
  which the debtor is entitled to a  surplus  or  a  consumer  obligor  is
  liable for a deficiency under Section 9--615, the secured party shall:
         (1) send  an  explanation  to  the debtor or consumer obligor, as
             applicable, after the disposition and:
             (A) before or when the secured party accounts to  the  debtor
                 and pays any surplus or first makes written demand on the
                 consumer obligor after the disposition for payment of the
                 deficiency; and
             (B) within fourteen days after receipt of a request; or
         (2) in  the  case  of  a  consumer  obligor  who  is liable for a
             deficiency, within fourteen days after receipt of a  request,
             send  to  the  consumer  obligor a record waiving the secured
             party's right to a deficiency.
    (c) Required information.  To  comply  with  subsection  (a)(1)(B),  a
  writing must provide the following information in the following order:
         (1) the  aggregate  amount of obligations secured by the security
             interest under which the disposition was made,  and,  if  the
             amount  reflects  a  rebate  of  unearned  interest or credit
             service charge, an indication of that fact, calculated as  of
             a specified date:
             (A) if  the secured party takes or receives possession of the
                 collateral after default, not more than thirty-five  days
                 before the secured party takes or receives possession; or
             (B) if  the secured party takes or receives possession of the
                 collateral before default or does not take possession  of
                 the collateral, not more than thirty-five days before the
         (2) the amount of proceeds of the disposition;
         (3) the  aggregate  amount of the obligations after deducting the
             amount of proceeds;
         (4) the amount, in  the  aggregate  or  by  type,  and  types  of
             expenses,  including expenses of retaking, holding, preparing
             for disposition, processing, and disposing of the collateral,
             and attorney's fees secured by the collateral which are known
             to the secured party and relate to the current disposition;
         (5) the amount, in  the  aggregate  or  by  type,  and  types  of
             credits,  including  rebates  of  interest  or credit service
             charges, to which the obligor is known  to  be  entitled  and
             which are not reflected in the amount in paragraph (1); and
         (6) the amount of the surplus or deficiency.
    (d) Substantial  compliance.  A particular phrasing of the explanation
  is  not  required.  An  explanation  complying  substantially  with  the
  requirements  of subsection (a) is sufficient, even if it includes minor
  errors that are not seriously misleading.
    (e) Charges for responses. A debtor or consumer  obligor  is  entitled
  without  charge  to  one response to a request under this section during
  any six-month period in which the secured party  did  not  send  to  the
  debtor or consumer obligor an explanation pursuant to subsection (b)(1).
  The  secured  party  may  require  payment  of a charge not exceeding 25
  dollars for each additional response.

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