2012 Pennsylvania Consolidated Statutes
Title 13 - COMMERCIAL CODE
Chapter 96 - Default
Section 9616 - Explanation of calculation of surplus or deficiency

     § 9616.  Explanation of calculation of surplus or deficiency.
        (a)  Definitions.--As used in this section, the following
     words and phrases shall have the meanings given to them in this
     subsection:
        "Explanation."  A writing which:
            (1)  states the amount of the surplus or deficiency;
            (2)  provides an explanation in accordance with
        subsection (c) of how the secured party calculated the
        surplus or deficiency;
            (3)  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
            (4)  provides a telephone number or mailing address from
        which additional information concerning the transaction is
        available.
        "Request."  A record:
            (1)  authenticated by a debtor or consumer obligor;
            (2)  requesting that the recipient provide an
        explanation; and
            (3)  sent after disposition of the collateral under
        section 9610 (relating to disposition of collateral after
        default).
        (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 9615
     (relating to application of proceeds of disposition; liability
     for deficiency and right to surplus), the secured party shall
     comply with one of the following paragraphs:
            (1)  Send an explanation to the debtor or consumer
        obligor, as applicable, after the disposition and:
                (i)  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
                (ii)  within 14 days after receipt of a request.
            (2)  In the case of a consumer obligor who is liable for
        a deficiency, within 14 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 paragraph (2) of
     the definition of the term "explanation" in subsection (a), 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:
                (i)  if the secured party takes or receives
            possession of the collateral after default, not more than
            35 days before the secured party takes or receives
            possession; or
                (ii)  if the secured party takes or receives
            possession of the collateral before default or does not
            take possession of the collateral, not more than 35 days
            before the disposition.
            (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 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).
            (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 which 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 for each additional
     response.

        Cross References.  Section 9616 is referred to in sections
     9602, 9625, 9628 of this title.