                                 CODE OF VIRGINIA

ACTION IN WHICH DEFICIENCY OR SURPLUS IS IN ISSUE (§ 8.9A-626)

Applicable rules if amount of deficiency or surplus in issue. In an action
arising from a transaction in which the amount of a deficiency or surplus is in
issue, the following rules apply:

1. 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 obligor places the secured party&#8217;s compliance in
issue.

2. If the secured party&#8217;s compliance is placed in issue, the secured party
has the burden of establishing that the collection, enforcement, disposition, or
acceptance was conducted in accordance with this part.

3. Except as otherwise provided in § 8.9A-628, if a secured party fails to
prove that the collection, enforcement, disposition, or acceptance was conducted
in accordance with the provisions of this part relating to collection,
enforcement, disposition, or acceptance, the liability of a debtor or a
secondary obligor for a deficiency is limited to an amount by which the sum of
the secured obligation, expenses, and attorney&#8217;s fees exceeds the greater
of:

   A. the proceeds of the collection, enforcement, disposition, or acceptance; or

   B. 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.

4. For purposes of subsection (3) (B), the amount of proceeds that would have
been realized is equal to the sum of the secured obligation, expenses, and
attorney&#8217;s fees unless the secured party proves that the amount is less
than that sum.

5. If a deficiency or surplus is calculated under &#xA7; 8.9A-615 (f), the
debtor or obligor has the burden of establishing that the amount of proceeds of
the disposition is significantly below the range of prices that a complying
disposition to a person other than the secured party, a person related to the
secured party, or a secondary obligor would have brought.

HISTORY: 2000, c. 1007.