Montana Code 30-9A-616. Explanation of calculation of surplus or deficiency
30-9A-616. Explanation of calculation of surplus or deficiency. (1) In this section, the following definitions apply:
Terms Used In Montana Code 30-9A-616
- Collateral: means the property subject to a security interest or agricultural lien. See Montana Code 30-9A-102
- Consumer obligor: means an obligor who is an individual and who incurred the obligation as part of a transaction entered into primarily for personal, family, or household purposes. See Montana Code 30-9A-102
- Consumer-goods transaction: means a transaction to the extent that:
(i)an individual incurs an obligation primarily for personal, family, or household purposes; and
(ii)a security interest in consumer goods or in consumer goods and software that is used, licensed, or bought for use primarily for personal, family, or household purposes secures the obligation. See Montana Code 30-9A-102
- Debtor: means :
(i)a person having a property interest, other than a security interest or other lien, in the collateral, whether or not the person is an obligor;
(ii)a seller of accounts, chattel paper, payment intangibles, or promissory notes; or
(iii)a consignee. See Montana Code 30-9A-102
- Obligor: means a person that, with respect to an obligation secured by a security interest in or an agricultural lien on the collateral:
(A)owes payment or other performance of the obligation;
(B)has provided property other than the collateral to secure payment or other performance of the obligation; or
(C)is otherwise accountable in whole or in part for payment or other performance of the obligation. See Montana Code 30-9A-102
- Secured party: means :
(i)a person in whose favor a security interest is created or provided for under a security agreement, whether or not any obligation to be secured is outstanding;
(ii)a person that holds an agricultural lien;
(iii)a consignor;
(iv)a person to which accounts, chattel paper, payment intangibles, or promissory notes have been sold;
(v)a trustee, indenture trustee, agent, collateral agent, or other representative in whose favor a security interest or agricultural lien is created or provided for; or
(vi)a person that holds a security interest arising under 30-2-401, 30-2-505, 30-2-711(3), 30-2A-508(5), 30-4-208, or 30-5-118. See Montana Code 30-9A-102
- Writing: includes printing. See Montana Code 1-1-203
(a)”Explanation” means a writing that:
(i)states the amount of the surplus or deficiency;
(ii)provides an explanation in accordance with subsection (3) of how the secured party calculated the surplus or deficiency;
(iii)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
(iv)provides a telephone number or mailing address from which additional information concerning the transaction is available.
(b)”Request” means a record:
(i)authenticated by a debtor or consumer obligor;
(ii)requesting that the recipient provide an explanation; and
(iii)sent after disposition of the collateral under 30-9A-610.
(2)In a consumer-goods transaction in which the debtor is entitled to a surplus or a consumer obligor is liable for a deficiency under 30-9A-615, the secured party shall:
(a)send an explanation to the debtor or consumer obligor, as applicable, after the disposition and:
(i)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
(ii)within 14 days after receipt of a request; or
(b)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.
(3)To comply with subsection (1)(a)(ii), a writing must provide the following information in the following order:
(a)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:
(i)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
(ii)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;
(b)the amount of proceeds of the disposition;
(c)the aggregate amount of the obligations after deducting the amount of proceeds;
(d)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 that are known to the secured party and relate to the current disposition;
(e)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 that are not reflected in the amount in subsection (3)(a); and
(f)the amount of the surplus or deficiency.
(4)A particular phrasing of the explanation is not required. An explanation complying substantially with the requirements of subsection (1)(a) is sufficient, even if it includes minor errors that are not seriously misleading.
(5)A debtor or consumer obligor is entitled without charge to one response to a request under this section during any 6-month period in which the secured party did not send to the debtor or consumer obligor an explanation pursuant to subsection (2)(a). The secured party may require payment of a charge not exceeding $25 for each additional response.