Sale of repossessed vehicle in commercially reasonable manner; application of proceeds; injunctive relief; damages.
1. Every repossessed vehicle shall be sold in a commercially reasonable manner. The fact that a better price could have been obtained by a sale at a different time or in a different method from that selected by the secured party is not of itself sufficient to establish that the sale was not made in a commercially reasonable manner. If the secured party either sells the vehicle in the usual manner in any recognized market for such a vehicle or if he sells at the price current in such market at the time of his sale or if he has otherwise sold in conformity with reasonable commercial practices among dealers in the type of vehicle sold he has sold in a commercially reasonable manner. A disposition which has been approved in any judicial proceeding shall conclusively be deemed to be commercially reasonable, but this sentence does not indicate that any such approval must be obtained in any case nor does it indicate that any disposition not so approved is not commercially reasonable.
2. The proceeds of disposition shall be applied in the order following to:
(a) The reasonable expenses of retaking, holding, preparing for sale and selling, and, to the extent provided for in the agreement, the reasonable attorneys’ fees and legal expenses incurred by the secured party.
(b) The satisfaction of indebtedness secured by the security interest under which the disposition is made.
(c) The satisfaction of indebtedness secured by any subordinate security interest in the collateral if written notification of demand therefor is received before distribution of the proceeds is completed. If requested by the secured party, the holder of a subordinate security interest must seasonably furnish reasonable proof of his interest, and unless he does so, the secured party need not comply with his demand.
(d) The payment of any surplus to the debtor.
3. If it is established that the secured party is not proceeding in accordance with the provisions of this section and NRS 482.516 disposition may be ordered or restrained on appropriate terms and conditions. If the disposition has occurred, the debtor or any person entitled to notification or whose security interest has been made known to the secured party prior to the disposition has a right to recover from the secured party any loss caused by failure to comply with the provisions of this section. If the disposition was not commercially reasonable, as specified in subsection 1, the debtor has a right to recover double his actual damages.
Last modified: February 25, 2006