{"data":{"id":"us-ky/krs-355.9-616","jurisdiction":"us-ky","citation":"KRS 355.9-616","heading":"Explanation of calculation of surplus or deficiency.","body":"(1) In this section:\n(a) \"Explanation\" means a record that:\n1. States the amount of the surplus or deficiency;\n2. Provides an explanation in accordance with subsection (3) of this section\nof how the secured party calculated the surplus or deficiency;\n3. States, if applicable, that future debits, credits, charges, including\nadditional credit service charges or interest, rebates, and expenses may\naffect the amount of the surplus or deficiency; and\n4. Provides a telephone number or mailing address from which additional\ninformation concerning the transaction is available; and\n(b) \"Request\" means a record:\n1. Signed by a debtor or consumer obligor;\n2. Requesting that the recipient provide an explanation; and\n3. Sent after disposition of the collateral under KRS 355.9-610.\n(2) In a consumer -goods transaction in which the debtor is entitled to a surplus or a\nconsumer obligor is liable for a deficiency und er KRS 355.9-615, the secured party\nshall:\n(a) Send an explanation to the debtor or consumer obligor, as applicable, after the\ndisposition and:\n1. Before or when the secured party accounts to the debtor and pays any\nsurplus or first makes demand in a recor d on the consumer obligor after\nthe disposition for payment of the deficiency; and\n2. Within fourteen (14) days after receipt of a request; or\n(b) In the case of a consumer obligor who is liable for a deficiency, within\nfourteen (14) days after receipt of a request, send to the consumer obligor a\nrecord waiving the secured party's right to a deficiency.\n(3) To comply with subsection (1)(a)2. of this section, an explanation must provide the\nfollowing information in the following order:\n(a) The aggregate amou nt of obligations secured by the security interest under\nwhich the disposition was made, and, if the amount reflects a rebate of\nunearned interest or credit service charge, an indication of that fact, calculated\nas of a specified date:\n1. If the secured pa rty takes or receives possession of the collateral after\ndefault, not more than thirty -five (35) days before the secured party\ntakes or receives possession; or\n2. If the secured party takes or receives possession of the collateral before\ndefault or does no t take possession of the collateral, not more than\nthirty-five (35) days before the disposition;\n(b) The amount of proceeds of the disposition;\n(c) The aggregate amount of the obligations after deducting the amount of\nproceeds;\n(d) The amount, in the aggre gate or by type, and types of expenses, including\nexpenses of retaking, holding, preparing for disposition, processing, and\ndisposing of the collateral, and attorney's fees secured by the collateral which\nare known to the secured party and relate to the current disposition;\n(e) The amount, in the aggregate or by type, and types of credits, including\nrebates of interest or credit service charges, to which the obligor is known to\nbe entitled and which are not reflected in the amount in paragraph (a) of this\nsubsection; and\n(f) The amount of the surplus or deficiency.\n(4) (a) A particular phrasing of the explanation is not required.\n(b) An explanation complying substantially with the requirements of subsection\n(1) of this section is sufficient, even if it inclu des minor errors that are not\nseriously misleading.\n(5) A debtor or consumer obligor is entitled without charge to one (1) response to a\nrequest under this section during any six (6) month period in which the secured\nparty did not send to the debtor or con sumer obligor an explanation pursuant to\nsubsection (2)(a) of this section. The secured party may require payment of a charge\nnot exceeding twenty-five dollars ($25) for each additional response.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=55712","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:49Z","sha256":"cc19f2f207bbe982dfa74597493fee4976d3cf318d63a4c43ab10f2cafbb787f","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.9-615","next":"us-ky/krs-355.9-617"},"notice":"GroundRules: Original legal text. Not legal advice."}