KRS 355.9-626: Action in which deficiency or surplus is in issue.

(1) In an action arising from a transaction, other than a consumer transaction, in which

the amount of a deficiency or surplus is in issue, the following rules apply:

(a) A secured party need not prove compliance with the provisions of this part of

this articl e relating to collection, enforcement, disposition, or acceptance

unless the debtor or a secondary obligor places 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 establi shing that the collection, enforcement, disposition, or

acceptance was conducted in accordance with this part of this article.

(c) Except as otherwise provided in KRS 355.9 -628, if a secured party fails to

prove that the collection, enforcement, dispositio n, or acceptance was

conducted in accordance with the provisions of this part of this article 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 whic h the

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 p arty proceeded in accordance with the

provisions of this part of this article relating to collection, enforcement,

disposition, or acceptance.

(d) For purposes of paragraph (c)2. of this subsection, the amount of proceeds that

would have been realized is e qual to the sum of the secured obligation,

expenses, and attorney's fees unless the secured party proves that the amount

is less than that sum.

(e) If a deficiency or surplus is calculated under KRS 355.9 -615(6), the debtor or

obligor has the burden of est ablishing 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.

(2) The limitation of the rules in subsection (1) of this section to transactions other than

consumer transactions is intended to leave to the court the determination of the

proper rules in consumer transactions. The court may not infer from that limitation

the nature of the proper rule in consumer transactions and may continue to apply

established approaches.