                                 CODE OF VIRGINIA

EXPLANATION OF CALCULATION OF SURPLUS OR DEFICIENCY (§ 8.9A-616)

a. Definitions. In this section:

   1. &#8220;Explanation&#8221; means a record 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. &#8220;Request&#8221; 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 &#xA7; 8.9A-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 § 8.9A-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 demand in a record 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&#8217;s right to a deficiency.

c. Required information. To comply with subsection (a) (1) (B), 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 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&#8217;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 twenty-five dollars for each additional
response.

HISTORY: 2000, c. 1007; 2024, c. 652.