LD 2245
pg. 430
Page 429 of 493 An Act to Adopt the Model Revised Article 9 Secured Transactions Page 431 of 493
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LR 1087
Item 1

 
NONCOMPLIANCE WITH ARTICLE

 
§9-1625.__Remedies for secured party's failure to comply with

 
Article

 
(1)__If it is established that a secured party is not
proceeding in accordance with this Article, a court may order or
restrain collection, enforcement or disposition of collateral on
appropriate terms and conditions.

 
(2)__Subject to subsections (3), (4) and (6), a person is
liable for damages in the amount of any loss caused by a failure
to comply with this Article.__Loss caused by a failure to comply
with a request under section 9-1210 may include loss resulting
from the debtor's inability to obtain, or increased costs of,
alternative financing.

 
(3)__Except as otherwise provided in section 9-1628:

 
(a)__A person that, at the time of the failure, was a
debtor, was an obligor or held a security interest in or
other lien on the collateral may recover damages under
subsection (2) for its loss; and

 
(b)__If the collateral is consumer goods, a person that was
a debtor or a secondary obligor at the time a secured party
failed to comply with this part may recover for that failure
in any event an amount not less than the credit service
charge plus 10% of the principal amount of the obligation or
the time-price differential plus 10% of the cash price.

 
(4)__A debtor whose deficiency is eliminated under section 9-
1626 may recover damages for the loss of any surplus.__However, a
debtor or secondary obligor whose deficiency is eliminated or
reduced under Section 9-1626 may not otherwise recover under
subsection (2) for noncompliance with the provisions of this part
relating to collection, enforcement, disposition or acceptance.

 
(5)__In addition to any damages recoverable under subsection
(2), the debtor, consumer obligor or person named as a debtor in
a filed record, as applicable, may recover $500 in each case from
a person that:

 
(a)__Fails to comply with section 9-1208;

 
(b)__Fails to comply with section 9-1209;

 
(c)__Files a record that the person is not entitled to file
under section 9-1509, subsection (1);


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