7-9A-628
Section 7-9A-628 Nonliability and limitation on liability of secured party; liability
of secondary obligor. (a) Limitation of liability of secured party for noncompliance with
article. Unless a secured party knows that a person is a debtor or obligor, knows the identity
of the person, and knows how to communicate with the person: (1) the secured party is not
liable to the person, or to a secured party or lienholder that has filed a financing statement
against the person, for failure to comply with this article; and (2) the secured party's failure
to comply with this article does not affect the liability of the person for a deficiency.
(b) Limitation of liability based on status as secured party. A secured party is not liable
because of its status as secured party: (1) to a person that is a debtor or obligor, unless
the secured party knows: (A) that the person is a debtor or obligor; (B) the identity of the
person; and (C) how to communicate with the person; or (2) to a secured party or...
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7-9A-626
Section 7-9A-626 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 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 7-9A-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,...
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7-9A-625
Section 7-9A-625 Remedies for secured party's failure to comply with article. (a) Judicial
orders concerning noncompliance. If it is established that a secured party is not proceeding
in accordance with this article, a court may order or restrain collection, enforcement, or
disposition of collateral on appropriate terms and conditions. (b) Damages for noncompliance.
Subject to subsections (c), (d), and (f), a person is liable for damages in the amount of
any loss caused by a failure to comply with this article. Loss caused by a failure to comply
may include loss resulting from the debtor's inability to obtain, or increased costs of, alternative
financing. (c) Persons entitled to recover damages; statutory damages in consumer-goods transaction.
Except as otherwise provided in Section 7-9A-628: (1) a person that, at the time of
the failure, was a debtor, was an obligor, or held a security interest in or other lien on
the collateral may recover damages under subsection (b) for its loss;...
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7-3-605
Section 7-3-605 Discharge of indorsers and accommodation parties. (a) In this section,
the term "indorser" includes a drawer having the obligation described in Section
7-3-414(d). (b) Discharge, under Section 7-3-604, of the obligation of a party to pay
an instrument does not discharge the obligation of an indorser or accommodation party having
a right of recourse against the discharged party. (c) If a person entitled to enforce an instrument
agrees, with or without consideration, to an extension of the due date of the obligation of
a party to pay the instrument, the extension discharges an indorser or accommodation party
having a right of recourse against the party whose obligation is extended to the extent the
indorser or accommodation party proves that the extension caused loss to the indorser or accommodation
party with respect to the right of recourse. (d) If a person entitled to enforce an instrument
agrees, with or without consideration, to a material modification of the...
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7-9A-614
Section 7-9A-614 Contents and form of notification before disposition of collateral:
Consumer-goods transaction. In a consumer-goods transaction, the following rules apply: (1)
A notification of disposition must provide the following information: (A) the information
specified in Section 7-9A-613(1); (B) a description of any liability for a deficiency
of the person to which the notification is sent; (C) a telephone number from which the amount
that must be paid to the secured party to redeem the collateral under Section 7-9A-623
is available; and (D) a telephone number or mailing address from which additional information
concerning the disposition and the obligation secured is available. (2) A particular phrasing
of the notification is not required. (3) The following form of notification, when completed,
provides sufficient information: Name and address of secured party Date NOTICE OF OUR PLAN
TO SELL PROPERTY Name and address of any obligor who is also a debtor Subject: ___...
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7-9A-615
Section 7-9A-615 Application of proceeds of disposition; liability for deficiency and
right to surplus. (a) Application of proceeds. A secured party shall apply or pay over for
application the cash proceeds of disposition under Section 7-9A-610 in the following
order to: (1) the reasonable expenses of retaking, holding, preparing for disposition, processing,
and disposing, and, to the extent provided for by agreement and not prohibited by law, reasonable
attorney's fees and legal expenses incurred by the secured party; (2) the satisfaction of
obligations secured by the security interest or agricultural lien under which the disposition
is made; (3) the satisfaction of obligations secured by any subordinate security interest
in or other subordinate lien on the collateral if: (A) the secured party receives from the
holder of the subordinate security interest or other lien an authenticated demand for proceeds
before distribution of the proceeds is completed; and (B) in a case in which a...
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7-1-201
Section 7-1-201 General definitions. (a) [Reserved]. (b) Subject to additional definitions
contained in the subsequent articles of this title which are applicable to specific articles
or parts thereof, and unless the context otherwise requires, in this title: (1) "Action,"
in the sense of a judicial proceeding, includes recoupment, counterclaim, set-off, suit in
equity, and any other proceeding in which rights are determined. (2) "Aggrieved party"
means a party entitled to pursue a remedy. (3) "Agreement," as distinguished from
"contract," means the bargain of the parties in fact, as found in their language
or inferred from other circumstances, including course of performance, course of dealing,
or usage of trade as provided in Section 7-1-303. (4) "Bank" means a person
engaged in the business of banking and includes a savings bank, savings and loan association,
credit union, and trust company. (5) "Bearer" means a person in possession of a
negotiable instrument, document of title, or...
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7-9A-605
Section 7-9A-605 Unknown debtor or secondary obligor. A secured party does not owe a
duty based on its status as secured party: (1) to a person that is a debtor or obligor, unless
the secured party knows: (A) that the person is a debtor or obligor; (B) the identity of the
person; and (C) how to communicate with the person; or (2) to a secured party or lienholder
that has filed a financing statement against a person, unless the secured party knows: (A)
that the person is a debtor; and (B) the identity of the person. (Act 2001-481, p. 647, §1.)...

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7-9A-616
Section 7-9A-616 Explanation of calculation of surplus or deficiency. (a) Definitions.
In this section: (1) "Explanation" means a writing that: (A) states the amount
of the surplus or deficiency; (B) provides an explanation in accordance with subsection (c)
of how the secured party calculated the surplus or deficiency; (C) 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 (D) provides
a telephone number or mailing address from which additional information concerning the transaction
is available. (2) "Request" means a record: (A) authenticated by a debtor or consumer
obligor; (B) requesting that the recipient provide an explanation; and (C) sent after disposition
of the collateral under Section 7-9A-610. (b) Explanation of calculation. In a consumer-goods
transaction in which the debtor is entitled to a surplus or a consumer obligor is liable...

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7-9A-611
Section 7-9A-611 Notification before disposition of collateral. (a) "Notification
date." In this section, "notification date" means the earlier of the
date on which: (1) a secured party sends to the debtor and any secondary obligor an authenticated
notification of disposition; or (2) the debtor and any secondary obligor waive the right to
notification. (b) Notification of disposition required. Except as otherwise provided in subsection
(d), a secured party that disposes of collateral under Section 7-9A-610 shall send
to the persons specified in subsection (c) a reasonable authenticated notification of disposition.
(c) Persons to be notified. To comply with subsection (b), the secured party shall send an
authenticated notification of disposition to: (1) the debtor; (2) any secondary obligor; and
(3) if the collateral is other than consumer goods: (A) any other person from which the secured
party has received, before the notification date, an authenticated notification of a claim
of an...
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