Section 9--616. Explanation of Calculation of Surplus or Deficiency.

(a) Definitions. In this section:

(1) "Explanation" means a writing that:

(A) states the amount of the surplus or deficiency;

(B) provides an explanation in accordance with subsection (c)

of how the secured party calculated the surplus or

deficiency;

(C) 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

(D) provides a telephone number or mailing address from which

additional information concerning the transaction is

available.

(2) "Request" means a record:

(A) authenticated by a debtor or consumer obligor;

(B) requesting that the recipient provide an explanation; and

(C) sent after disposition of the collateral under Section

9--610.

(b) Explanation of calculation. In a consumer-goods transaction in
which the debtor is entitled to a surplus or a consumer obligor is
liable for a deficiency under Section 9--615, the secured party shall:

(1) send an explanation to the debtor or consumer obligor, as

applicable, after the disposition and:

(A) 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

(B) within fourteen days after receipt of a request; or

(2) in the case of a consumer obligor who is liable for a

deficiency, within fourteen days after receipt of a request,

send to the consumer obligor a record waiving the secured

party's right to a deficiency.

(c) Required information. To comply with subsection (a)(1)(B), a
writing must provide the following information in the following order:

(1) 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:

(A) if the secured party takes or receives possession of the

collateral after default, not more than thirty-five days

before the secured party takes or receives possession; or

(B) if the secured party takes or receives possession of the

collateral before default or does not take possession of

the collateral, not more than thirty-five days before the

disposition;

(2) the amount of proceeds of the disposition;

(3) the aggregate amount of the obligations after deducting the

amount of proceeds;

(4) 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 attorney's fees secured by the collateral which are known

to the secured party and relate to the current disposition;

(5) 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

which are not reflected in the amount in paragraph (1); and

(6) the amount of the surplus or deficiency.

(d) Substantial compliance. A particular phrasing of the explanation
is not required. An explanation complying substantially with the
requirements of subsection (a) is sufficient, even if it includes minor
errors that are not seriously misleading.

(e) Charges for responses. A debtor or consumer obligor is entitled
without charge to one response to a request under this section during
any six-month period in which the secured party did not send to the
debtor or consumer obligor an explanation pursuant to subsection (b)(1).
The secured party may require payment of a charge not exceeding 25
dollars for each additional response.