2006 Minnesota Statutes

336.9-625 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 losses. 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 336.9-628:
(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; and
(2) if the collateral is consumer goods, a person that was a debtor or a secondary obligor at
the time a secured party failed to comply with this part may recover for that failure in any event
an amount not less than the credit service charge plus ten percent of the principal amount of the
obligation or the time-price differential plus ten percent of the cash price.
(d) Recovery when deficiency eliminated or reduced. A debtor whose deficiency is
eliminated under section 336.9-626 may recover damages for the loss of any surplus. However, a
debtor or secondary obligor whose deficiency is eliminated or reduced under section 336.9-626
may not otherwise recover under subsection (b) for noncompliance with the provisions of this part
relating to collection, enforcement, disposition, or acceptance.
(e) Statutory damages: noncompliance with specified provisions. In addition to any
damages recoverable under subsection (b), the debtor, consumer obligor, or person named as a
debtor in a filed record, as applicable, may recover $500 in each case from a person who:
(1) fails to comply with section 336.9-208;
(2) fails to comply with section 336.9-209;
(3) files a record that the person is not entitled to file under section 336.9-509(a);
(4) fails to cause the secured party of record to file or send a termination statement as
required by section 336.9-513(a) or (c);
(5) fails to comply with section 336.9-616(b)(1) and whose failure is part of a pattern, or
consistent with a practice, of noncompliance; or
(6) fails to comply with section 336.9-616(b)(2).
(f) Statutory damages: noncompliance with section 336.9-210. A debtor or consumer
obligor may recover damages under subsection (b) and, in addition, $500 in each case from a
person that, without reasonable cause, fails to comply with a request under section 336.9-210. A
recipient of a request under section 336.9-210 which never claimed an interest in the collateral or
obligations that are the subject of a request under that section has a reasonable excuse for failure
to comply with the request within the meaning of this subsection.
(g) Limitation of security interest: noncompliance with section 336.9-210. If a secured
party fails to comply with a request regarding a list of collateral or a statement of account under
section 336.9-210, the secured party may claim a security interest only as shown in the list or
statement included in the request as against a person that is reasonably misled by the failure.
History: 2000 c 399 art 1 s 126