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Action in which deficiency or surplus is in issue - 13 Pa. Cons. Stat. § 9626Legal Research Home > Pennsylvania Statutes
§ 9626. Action in which deficiency or surplus is in issue.
(a) Applicable rules if amount of deficiency or surplus 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 chapter 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 chapter.
(3) Except as otherwise provided in section 9628
(relating to nonliability and limitation on liability of
secured party; liability of secondary obligor), if a secured
party fails to prove that the collection, enforcement,
disposition or acceptance was conducted in accordance with
the provisions of this chapter 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 fees exceeds the greater of:
(i) the proceeds of the collection, enforcement,
disposition or acceptance; or
(ii) the amount of proceeds which would have been
realized had the noncomplying secured party proceeded in
accordance with the provisions of this chapter relating
to collection, enforcement, disposition or acceptance.
(4) For purposes of paragraph (3)(ii), the amount of
proceeds which would have been realized is equal to the sum
of the secured obligation, expenses and attorney fees unless
the secured party proves that the amount is less than that
sum.
(5) If a deficiency or surplus is calculated under
section 9615(f) (relating to calculation of surplus or
deficiency in disposition to person related to secured
party), the debtor or obligor has the burden of establishing
that the amount of proceeds of the disposition is
significantly below the range of prices which 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) Nonconsumer 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.
Cross References. Section 9626 is referred to in sections
9602, 9625 of this title.
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Last modified: November 27, 2007 |
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