2006 Utah Code - 70C-7-101 — Restriction on deficiency judgments in consumer credit sales.

     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 which were the subject of a consumer credit sale and in which the seller has a security interest to secure a debt arising from the sale of goods or services or a combined sale of goods and services, and the cash price of the sale was $3,000 or less, any debt remaining from the sale shall be fully satisfied and the seller has no further obligation to the buyer with respect to the goods taken or accepted.
     (2) If the seller brings an action against the buyer for a debt arising from a consumer credit sale of goods or services, when under this section the creditor would not be entitled to a deficiency 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 proceedings pursuant to the judgment.
     (3) This section does not apply if the goods which were the subject of the sale and which secured a debt arising from a consumer credit sale are damaged to a significant degree after the goods 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 the creditor.

Enacted by Chapter 159, 1985 General Session