2006 New York Code - Action In Which Deficiency Or Surplus Is In Issue

 
  Section 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 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 attorney's 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 attorney's fees unless the secured
             party proves that the amount is less than that sum.
         (5) If a  deficiency  or  surplus  is  calculated  under  Section
             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) Non-consumer 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.