LD 2245
pg. 18
Page 17 of 493 An Act to Adopt the Model Revised Article 9 Secured Transactions Page 19 of 493
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LR 1087
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related to the secured party, or a secondary obligor would have
brought." ("Person related to" is defined in Section 9-102
[Maine cite section 9-1102].) In these situations there is
reason to suspect that there may be inadequate incentives to
obtain a better price. Consequently, instead of calculating a
deficiency (or surplus) based on the actual net proceeds, the
deficiency (or surplus) would be calculated based on the proceeds
that would have been received in a disposition to person other
than the secured party, a person related to the secured party, or
a secondary obligor.

 
j. Consumer Goods, Consumer-Goods Transactions, and
Consumer Transactions. This Article (including the
accompanying conforming revisions (see Appendix I)) includes
several special rules for "consumer goods," "consumer
transactions," and "consumer-goods transactions." Each term
is defined in Section 9-102 [Maine cite section 9-1102].

 
(i) Revised Sections 2-502 and 2-716 provide a buyer
of consumer goods with enhanced rights to possession of
the goods, thereby accelerating the opportunity to
achieve "buyer in ordinary course of business" status
under Section 1-201.

 
(ii) Section 9-103(e) [Maine cite section 9-1103,
subsection (5)] (allocation of payments for determining
extent of purchase-money status), (f) [Maine cite
subsection (6)] (purchase-money status not affected by
cross-collateralization, refinancing, restructuring, or
the like), and (g) [Maine cite subsection (7)] (secured
party has burden of establishing extent of purchase-
money status) do not apply to consumer-goods
transactions. Sections 9-103 [Maine cite section 9-
1103] also provides that the limitation of those
provisions to transactions other than consumer-goods
transactions leaves to the courts the proper rules for
consumer-goods transactions and prohibits the courts
from drawing inferences from that limitation.

 
(iii) Section 9-108 [Maine cite section 9-1108]
provides that in a consumer transaction a description
of consumer goods, a security entitlement, securities
account, or commodity account "only by [UCC-defined]
type of collateral" is not a sufficient collateral
description in a security agreement.

 
(iv) Sections 9-403 and 9-404 [Maine cite sections 9-
1403 and 9-1404] make effective the Federal Trade
Commission's anti-holder-in-due-course rule (when


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