| | | consumer-goods transaction, the debtor or obligor is entitled to | | know the amount of a surplus or deficiency and the basis upon | | which the surplus or deficiency was calculated. Under subsection | | (b)(1) [Maine cite subsection (2), paragraph (a)], a secured | | party is obligated to provide this information (an "explanation," | | defined in subsection (a)(1) [Maine cite subsection (1), | | paragraph (a)]) no later than the time that it accounts for and | | pays a surplus or the time of its first written attempt to | | collect the deficiency. The obligor need not make a request for | | an accounting in order to receive an explanation. A secured | | party who does not attempt to collect a deficiency in writing or | | account for and pay a surplus has no obligation to send an | | explanation under subsection (b)(1) [Maine cite subsection (2), | | paragraph (a)] and, consequently, cannot be liable for | | noncompliance. |
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| | | A debtor or secondary obligor need not wait until the secured | | party commences written collection efforts in order to receive an | | explanation of how a deficiency or surplus was calculated. | | Subsection (b)(2) [Maine cite subsection (2), paragraph (b)] | | obliges the secured party to send an explanation within 14 days | | after it receives a "request" (defined in subsection (a)(2) | | [Maine cite subsection (1), paragraph (b)]). |
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| | | 3. Explanation of Calculation of Surplus or Deficiency. | | Subsection (c) [Maine cite subsection (3)] contains the | | requirements for how a calculation of a surplus or deficiency | | must be explained in order to satisfy subsection (a)(1)(B) [Maine | | cite subsection (1), paragraph (a), subparagraph (ii)]. It gives | | a secured party some discretion concerning rebates of interest or | | credit service charges. The secured party may include these | | rebates in the aggregate amount of obligations secured, under | | subsection (c)(1) [Maine cite subsection (3), paragraph (a)], or | | may include them with other types of rebates and credits under | | subsection (c)(5) [Maine cite subsection (3), paragraph (e)]. | | Rebates of interest or credit service charges are the only types | | of rebates for which this discretion is provided. If the secured | | party provides an explanation that includes rebates of pre- | | computed interest, its explanation must so indicate. The | | expenses and attorney's fees to be described pursuant to | | subsection (c)(4) [Maine cite subsection (3), paragraph (d)] are | | those relating to the most recent disposition, not those that may | | have been incurred in connection with earlier enforcement efforts | | and which have been resolved by the parties. |
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| | | 4. Liability for Noncompliance. A secured party who fails to | | comply with subsection (b)(2) [Maine cite subsection (2), | | paragraph (b)] is liable for any loss caused plus $500. See | | Section 9-625(b), (c), (e)(6) [Maine cite section 9-1625, | | subsection (2), subsection (3), subsection (5), paragraph (f)]. |
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