Pennsylvania Consolidated & Unconsolidated Statutes
Chapter 96 - Default
Section 9626 - Action in which deficiency or surplus is in issue

§ 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.

Structure Pennsylvania Consolidated & Unconsolidated Statutes

Pennsylvania Consolidated & Unconsolidated Statutes

Title 13 - COMMERCIAL CODE

Chapter 96 - Default

Extra - Chapter Notes

Section 9601 - Rights after default; judicial enforcement; consignor or buyer of accounts, chattel paper, payment intangibles or promissory notes

Section 9602 - Waiver and variance of rights and duties

Section 9603 - Agreement on standards concerning rights and duties

Section 9604 - Procedure if security agreement covers real property or fixtures

Section 9605 - Unknown debtor or secondary obligor

Section 9606 - Time of default for agricultural lien

Section 9607 - Collection and enforcement by secured party

Section 9608 - Application of proceeds of collection or enforcement; liability for deficiency and right to surplus

Section 9609 - Secured party's right to take possession after default

Section 9610 - Disposition of collateral after default

Section 9611 - Notification before disposition of collateral

Section 9612 - Timeliness of notification before disposition of collateral

Section 9613 - Contents and form of notification before disposition of collateral: general

Section 9614 - Contents and form of notification before disposition of collateral: consumer-goods transaction

Section 9615 - Application of proceeds of disposition; liability for deficiency and right to surplus

Section 9616 - Explanation of calculation of surplus or deficiency

Section 9617 - Rights of transferee of collateral

Section 9618 - Rights and duties of certain secondary obligors

Section 9619 - Transfer of record or legal title

Section 9620 - Acceptance of collateral in full or partial satisfaction of obligation; compulsory disposition of collateral

Section 9621 - Notification of proposal to accept collateral

Section 9622 - Effect of acceptance of collateral

Section 9623 - Right to redeem collateral

Section 9624 - Waiver

Section 9625 - Remedies for secured party's failure to comply with division

Section 9626 - Action in which deficiency or surplus is in issue

Section 9627 - Determination of whether conduct was commercially reasonable

Section 9628 - Nonliability and limitation on liability of secured party; liability of secondary obligor