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Tennessee Code Title 47. Commercial Instruments and Transactions § 47-9-625

Current as of January 02, 2024 | Updated by Findlaw Staff

(a) JUDICIAL ORDERS CONCERNING NONCOMPLIANCE. If it is established that a secured party is not proceeding in accordance with this chapter, a court may order or restrain collection, enforcement, or disposition of collateral on appropriate terms and conditions.

(b) DAMAGES FOR NONCOMPLIANCE. Subject to subsections (c), (d), and (f), a person is liable for damages in the amount of any loss caused by a failure to comply with this chapter. Loss caused by a failure to comply may include loss resulting from the debtor's inability to obtain, or increased costs of, alternative financing.

(c) PERSONS ENTITLED TO RECOVER DAMAGES; STATUTORY DAMAGES IN CONSUMER-GOODS TRANSACTION. Except as otherwise provided in § 47-9-628:

(1) 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 (b) for its loss; and

(2) 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 ten percent (10%) of the principal amount of the obligation or the time-price differential plus ten percent (10%) of the cash price.

(d) RECOVERY WHEN DEFICIENCY ELIMINATED OR REDUCED. A debtor whose deficiency is eliminated under § 47-9-626 may recover damages for the loss of any surplus. However, a debtor or secondary obligor whose deficiency is eliminated or reduced under § 47-9-626 may not otherwise recover under subsection (b) for noncompliance with this part relating to collection, enforcement, disposition, or acceptance.

(e) STATUTORY DAMAGES: NONCOMPLIANCE WITH SPECIFIED PROVISIONS. In addition to any damages recoverable under subsection (b), the debtor, consumer obligor, or person named as a debtor in a filed record, as applicable, may recover five hundred dollars ($500) in each case from a person that:

(1) fails to comply with § 47-9-208;

(2) fails to comply with § 47-9-209;

(3) files a record that the person is not entitled to file under § 47-9-509(a) and fails to file a termination statement within ten (10) days after receiving an authenticated demand;

(4) fails to cause the secured party of record to file or send a termination statement;

(A) as required by § 47-9-513(a) within ten (10) days after receiving an authenticated demand or

(B) as required by § 47-9-513(c);

(5) fails to comply with § 47-9-616(b)(1) and whose failure is part of a pattern, or consistent with a practice, of noncompliance; or

(6) fails to comply with § 47-9-616(b)(2).

(f) STATUTORY DAMAGES: NONCOMPLIANCE WITH § 47-9-210. A debtor or consumer obligor may recover damages under subsection (b) and, in addition, five hundred dollars ($500) in each case from a person that, without reasonable cause, fails to comply with a request under § 47-9-210. A recipient of a request under § 47-9-210 which never claimed an interest in the collateral or obligations that are the subject of a request under that section has a reasonable excuse for failure to comply with the request within the meaning of this subsection (f).

(g) Limitation of security interest: noncompliance with § 47-9-210. If a secured party fails to comply with a request regarding a list of collateral or a statement of account under § 47-9-210, the secured party may claim a security interest only as shown in the list or statement included in the request as against a person that is reasonably misled by the failure.

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Cite this article: FindLaw.com - Tennessee Code Title 47. Commercial Instruments and Transactions § 47-9-625 - last updated January 02, 2024 | https://codes.findlaw.com/tn/title-47-commercial-instruments-and-transactions/tn-code-sect-47-9-625/

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