KRS 355.9-616: Explanation of calculation of surplus or deficiency.

(1) In this section:

(a) "Explanation" means a record that:

1. States the amount of the surplus or deficiency;

2. Provides an explanation in accordance with subsection (3) of this section

of how the secured party calculated the surplus or deficiency;

3. 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

4. Provides a telephone number or mailing address from which additional

information concerning the transaction is available; and

(b) "Request" means a record:

1. Signed by a debtor or consumer obligor;

2. Requesting that the recipient provide an explanation; and

3. Sent after disposition of the collateral under KRS 355.9-610.

(2) In a consumer -goods transaction in which the debtor is entitled to a surplus or a

consumer obligor is liable for a deficiency und er KRS 355.9-615, the secured party

shall:

(a) Send an explanation to the debtor or consumer obligor, as applicable, after the

disposition and:

1. Before or when the secured party accounts to the debtor and pays any

surplus or first makes demand in a recor d on the consumer obligor after

the disposition for payment of the deficiency; and

2. Within fourteen (14) days after receipt of a request; or

(b) 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.

(3) To comply with subsection (1)(a)2. of this section, an explanation must provide the

following information in the following order:

(a) The aggregate amou nt 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:

1. If the secured pa rty 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

2. If the secured party takes or receives possession of the collateral before

default or does no t take possession of the collateral, not more than

thirty-five (35) days before the disposition;

(b) The amount of proceeds of the disposition;

(c) The aggregate amount of the obligations after deducting the amount of

proceeds;

(d) The amount, in the aggre gate or by type, and types of expenses, including

expenses of retaking, holding, preparing for disposition, processing, and

disposing of the collateral, and attorney's fees secured by the collateral which

are known to the secured party and relate to the current disposition;

(e) 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 (a) of this

subsection; and

(f) The amount of the surplus or deficiency.

(4) (a) A particular phrasing of the explanation is not required.

(b) An explanation complying substantially with the requirements of subsection

(1) of this section is sufficient, even if it inclu des minor errors that are not

seriously misleading.

(5) A debtor or consumer obligor is entitled without charge to one (1) response to a

request under this section during any six (6) month period in which the secured

party did not send to the debtor or con sumer obligor an explanation pursuant to

subsection (2)(a) of this section. The secured party may require payment of a charge

not exceeding twenty-five dollars ($25) for each additional response.