Section 1-9-616 - Explanation of calculation of surplus or deficiency(a) In this section:(1) "Explanation" means a record that: (A) states the amount of the surplus or deficiency;(B) provides an explanation in accordance with subsection (c) of this section 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) signed by a debtor or consumer obligor;(B) requesting that the recipient provide an explanation; and(C) sent after disposition of the collateral under Section 1-9-610 of this title.(b) 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 1-9-615 of this title, 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 demand in a record on the consumer obligor after the disposition for payment of the deficiency; and(B) within fourteen (14) days after receipt of a request; or(2) in the case of a consumer obligor who is liable for a deficiency, within fourteen (14) days after receipt of a request, send to the consumer obligor a record waiving the secured party's right to a deficiency.(c) To comply with subparagraph (B) of paragraph (1) of subsection (a) of this section, an explanation 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 (35) 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 (35) 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 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) of this subsection; and(6) the amount of the surplus or deficiency.(d) A particular phrasing of the explanation is not required. An explanation complying substantially with the requirements of subsection (a) of this section is sufficient, even if it includes minor errors that are not seriously misleading.(e) 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 paragraph (1) of subsection (b) of this section. The secured party may require payment of a charge not exceeding Twenty-five Dollars ($25.00) for each additional response.Okla. Stat. tit. 12A, § 1-9-616
Amended by Laws 2024 , c. 13, s. 85, eff. 11/1/2024.Added by Laws 2000 , SB 1519, c. 371, § 123, eff. 7/1/2001.Oklahoma Code Comment
New section 9-616 presents a new concept, requiring the secured party in a consumer-goods transaction to give an explanation in writing of the amount of and how the surplus or deficiency was calculated. The failure to give the explanation, although not an absolute bar, can result in a loss of deficiency or right to damages. See new section 9-627 . It also can lead to statutory damages. See new section 9-625 . Despite the general change of the term "writing" in revised Article 9 to accommodate electronic notices and records in many instances (see, e.g., revised section 9-102(a)(69) ) , in this instance a writing is required. See revised section 9-616(a)(1) . Neither the Oklahoma version of the Uniform Electronic Transactions Act (12A Okla. Stat. sections 15-101 --15-120) nor the Federal ESIGN Act ( 15 U.S.C. sections 7001 -- 7006, 7021 , and 7031 ) override this requirement.
The explanation must be given to the debtor or consumer obligor before the secured party accounts for a surplus or makes written demand on the consumer obligor for payment of a deficiency. The explanation must also be given within 14 days after a request, authenticated by the debtor or consumer obligor, for an explanation is made. The explanation is always required if there is a surplus, but is not required if the secured party foregoes written demand for the deficiency, unless the debtor/obligor requests it.
New section 9-616 provides for the information which must be included in the explanation. An explanation which substantially complies is sufficient even if it contains minor errors. Section 9-616(d) .