§ 554.9626

554.9626 Action in which deficiency or surplus is in issue. 1. Applicable rules if amount of deficiency or surplus in issue. In an action arising from a transaction, other than a consumer transaction, in which the amount of a deficiency orsurplus is in issue, the following rules apply: a. a secured party need not prove compliance with the provisions of this part relating to collection, enforcement, disposition, or acceptance unless the debtor or a secondary obligorplaces the secured party’s compliance in issue. b. if the secured party’s compliance is placed in issue, the secured party has the burden of establishing that the collection, enforcement, disposition, or acceptance was conducted inaccordance with this part. c. except as otherwise provided in section 554.9628, if a secured party fails to prove that the collection, enforcement, disposition, or acceptance was conducted in accordance withthe provisions of this part relating to collection, enforcement, disposition, or acceptance, theliability of a debtor or a secondary obligor for a deficiency is limited to an amount by whichthe sum of the secured obligation, expenses, and attorney’s fees exceeds the greater of: (1) the

ance, theliability of a debtor or a secondary obligor for a deficiency is limited to an amount by whichthe sum of the secured obligation, expenses, and attorney’s fees exceeds the greater of: (1) the proceeds of the collection, enforcement, disposition, or acceptance; or(2) the amount of proceeds that would have been realized had the noncomplying secured party proceeded in accordance with the provisions of this part relating to collection,enforcement, disposition, or acceptance. d. for purposes of paragraph 'c', subparagraph (2), the amount of proceeds that would have been realized is equal to the sum of the secured obligation, expenses, and attorney’sfees unless the secured party proves that the amount is less than that sum. e. if a deficiency or surplus is calculated under section 554.9615, subsection 6, the debtor or obligor has the burden of establishing that the amount of proceeds of the disposition issignificantly below the range of prices that a complying disposition to a person other thanthe secured party, a person related to the secured party, or a secondary obligor would havebrought. 2. Nonconsumer transactions — no inference.

ices that a complying disposition to a person other thanthe secured party, a person related to the secured party, or a secondary obligor would havebrought. 2. Nonconsumer transactions — no inference. The limitation of the rules in subsection 1 to transactions other than consumer transactions is intended to leave to the court thedetermination of the proper rules in consumer transactions. The court may not infer fromthat limitation the nature of the proper rule in consumer transactions and may continue toapply established approaches. 2000 Acts, ch 1149, §124, 187Referred to in §554.9602, 554.9625 Sat Dec 23 11:02:32 2023 Iowa Code 2024, Section 554.9626 (24, 0)