California Commercial Code 9614 – (a) In a consumer-goods transaction, the following rules …
(a) In a consumer-goods transaction, the following rules apply:
(1) A notification of disposition must provide all of the following information:
Terms Used In California Commercial Code 9614
- agreement: means the total legal obligation that results from the parties' agreement as determined by this code and as supplemented by any other applicable laws. See California Commercial Code 1201
- Creditor: includes a general creditor, a secured creditor, a lien creditor, and any representative of creditors, including an assignee for the benefit of creditors, a trustee in bankruptcy, a receiver in equity, and an executor or administrator of an insolvent debtor's or assignor's estate. See California Commercial Code 1201
- Electronic: means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities. See California Commercial Code 1201
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Money: means a medium of exchange that is currently authorized or adopted by a domestic or foreign government. See California Commercial Code 1201
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Person: means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, government, governmental subdivision, agency, or instrumentality, or any other legal or commercial entity. See California Commercial Code 1201
- Purchase: means taking by sale, lease, discount, negotiation, mortgage, pledge, lien, security interest, issue or reissue, gift, or any other voluntary transaction creating an interest in property. See California Commercial Code 1201
- Record: means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form. See California Commercial Code 1201
- Right: includes remedy. See California Commercial Code 1201
- Writing: includes printing, typewriting, or any other intentional reduction to tangible form. See California Commercial Code 1201
(A) The information specified in paragraph (1) of subdivision (a) of Section 9613.
(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 9623 is available.
(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 in accordance with the instructions in subdivision (b), 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: _____ [Identification of Transaction] _____ |
|
|
We have your _____ [describe collateral] _____ , because you broke promises in our agreement. |
|
|
{1} We will sell _____ [describe collateral] _____ at public sale. A sale could include a lease or license. The sale will be held as follows: |
|
|
Date: |
|
|
Time: |
|
|
Place: |
|
|
You may attend the sale and bring bidders if you want. |
|
|
{2} We will sell _____ [describe collateral] _____ at private sale sometime after [date]. |
|
|
A sale could include a lease or license. |
|
|
{3} The money that we get from the sale, after paying our costs, will reduce the amount you owe. If we get less money than you owe, you [will or will not, as applicable] still owe us the difference. If we get more money than you owe, you will get the extra money, unless we must pay it to someone else. |
|
|
{4} You can get the property back at any time before we sell it by paying us the full amount you owe, not just the past due payments, including our expenses. To learn the exact amount you must pay, call us at [telephone number]. |
|
|
{5} If you want us to explain to you in[writing] [writing or in [description of electronic record]] [description of electronic record] how we have figured the amount that you owe us, {6} call us at [telephone number] [or write us at [secured party’s address]][or contact us by [description of electronic communication method] {7} and request[a written explanation] [a written explanation or an explanation in [description of electronic record]] [an explanation in [description of electronic record]] {8} We will charge you $_____ for the explanation if we sent you another written explanation of the amount you owe us within the last six months.] |
|
|
{9} If you need more information about the sale [call us at [telephone number]] [or] [write us at [secured party’s address]] [or contact us by[description of electronic communication method]]. |
|
|
{10} We are sending this notice to the following other people who have an interest in [describe collateral] or who owe money under your agreement: [Names of all other debtors and obligors, if any] |
|
(b) The following instructions apply to the form of notification in paragraph (3) of subdivision (a):
(1) The instructions in this subdivision refer to the numbers in braces before items in the form of notification in paragraph (3) of subdivision (a). Do not include the numbers or braces in the notification. The numbers and braces are used only for the purpose of these instructions.
(2) Include and complete either item {1}, if the notification relates to a public disposition of the collateral, or item {2}, if the notification relates to a private disposition of the collateral.
(3) Include and complete items {3} to {7}, inclusive.
(4) In item {5}, include and complete any one of the three alternative methods for the explanation-writing, writing or electronic record, or electronic record.
(5) In item {6}, include the telephone number. In addition, the sender may include and complete either or both of the two additional alternative methods of communication-writing or electronic communication-for the recipient of the notification to communicate with the sender. Neither of the two additional methods of communication is required to be included.
(6) In item {7}, include and complete the method or methods for the explanation-writing, writing or electronic record, or electronic record-included in item {5}.
(7) Include and complete item {8} only if a written explanation is included in item {5} as a method for communicating the explanation and the sender will charge the recipient for another written explanation.
(8) In item {9}, include either the telephone number or the address or both the telephone number and the address. In addition, the sender may include and complete the additional method of communication-electronic communication-for the recipient of the notification to communicate with the sender. The additional method of electronic communication is not required to be included.
(9) If item {10} does not apply, insert “None” after “agreement:”.
(c) (1) If the collateral is a motor vehicle, a public disposition includes, but is not limited to, the following defined categories:
(A) Retail disposition by a retail seller of motor vehicles who offers the collateral for sale or lease to the general public in the same manner as goods that the seller disposes of on the seller’s own behalf.
(B) Retail disposition made subsequent to advertising in a publication with a recognized ability to attract retail motor vehicle buyers and lessees and in a manner designed to reach the retail buying and leasing public for vehicles of that type and condition.
(2) For dispositions under subparagraphs (A) and (B) of paragraph (1), the secured creditor shall ensure that the consumer has reasonable access to the motor vehicle in question in order to be able to exercise the right to inspect the motor vehicle.
(3) For dispositions under paragraph (1), the following rules apply:
(A) A notification in the form of paragraph (4) is sufficient, even if additional information appears at the end of the form.
(B) A notification in the form of paragraph (4) is sufficient, even if it includes errors in information not required by paragraph (1) of subdivision (a), unless the error is misleading with respect to rights arising under this division.
(C) If a notification under this subdivision is not in the form of paragraph (4), law other than this division determines the effect of including information not required by paragraph (1) of subdivision (a).
(4) For dispositions under paragraph (1), 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: _____ [Identification of Transaction] _____ |
|
|
We have your _____ [describe collateral] _____ , because you broke promises in our agreement. |
|
|
We will sell _____ (describe type of motor vehicle) _____ |
|
|
beginning on _____ (date) _____ |
|
|
by offering it for retail sale or lease to the general public through |
|
|
(select the applicable provision:) |
|
|
(A) Name of dealer |
|
|
Address of dealer |
|
|
You may inspect the motor vehicle and encourage people to purchase or lease it. |
|
|
(or) |
|
|
(B) Advertising it for sale to the general public to be purchased from _____ (name of secured creditor) _____ |
|
|
at _____ (address where vehicle is to be sold) _____ |
|
|
You may inspect the motor vehicle and encourage people to purchase or lease it. |
|
(d) Nothing in this section shall be construed to alter or disturb any right to inspect a consumer good prior to sale under existing law.
(Amended by Stats. 2023, Ch. 210, Sec. 66. (SB 95) Effective January 1, 2024.)