2007 Minnesota Statutes

336.9-616 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 336.9-610.
(b) Explanation of calculation. In a consumer goods transaction in which the debtor is
entitled to a surplus or a consumer obligor is liable for a deficiency under section 336.9-615, the
secured party shall:
(1) send an explanation to the debtor or consumer obligor, as applicable, after the disposition
and:
(A) before or when the secured party accounts to the debtor and pays any surplus or
first makes written demand on the consumer obligor after the disposition for payment of the
deficiency; and
(B) within 14 days after receipt of a request; or
(2) in the case of a consumer obligor who is liable for a deficiency, within 14 days after
receipt of a request, send to the consumer obligor a record waiving the secured party's right
to a deficiency.
(c) Required information. To comply with subsection (a)(1)(B), a writing must provide the
following information in the following order:
(1) the aggregate amount of obligations secured by the security interest under which the
disposition was made, and, if the amount reflects a rebate of unearned interest or credit service
charge, an indication of that fact, calculated as of a specified date:
(A) if the secured party takes or receives possession of the collateral after default, not more
than 35 days before the secured party takes or receives possession; or
(B) if the secured party takes or receives possession of the collateral before default or does
not take possession of the collateral, not more than 35 days before the disposition;
(2) the amount of proceeds of the disposition;
(3) the aggregate amount of the obligations after deducting the amount of proceeds;
(4) the amount, in the aggregate or by type, and types of expenses, including expenses of
retaking, holding, preparing for disposition, processing, and disposing of the collateral, and
attorneys fees secured by the collateral which are known to the secured party and relate to the
current disposition;
(5) the amount, in the aggregate or by type, and types of credits, including rebates of interest
or credit service charges, to which the obligor is known to be entitled and which are not reflected
in the amount in paragraph (1); and
(6) the amount of the surplus or deficiency.
(d) Substantial compliance. A particular phrasing of the explanation is not required. An
explanation complying substantially with the requirements of subsection (a) is sufficient, even if it
includes minor errors that are not seriously misleading.
(e) Charges for responses. A debtor or consumer obligor is entitled without charge to one
response to a request under this section during any six-month period in which the secured party
did not send to the debtor or consumer obligor an explanation pursuant to subsection (b)(1). The
secured party may require payment of a charge not exceeding $25 for each additional response.
History: 2000 c 399 art 1 s 117