{"data":{"id":"us-ky/krs-355.9-625","jurisdiction":"us-ky","citation":"KRS 355.9-625","heading":"Remedies for secured party's failure to comply with article.","body":"(1) If it is established that a secured party is not proceeding in accordance with this\narticle, a court may order or restrain collection, enforcement, or disposition of\ncollateral on appropriate terms and conditions.\n(2) Subject to subsections (3), (4), and (6) of this section, a person is liable for damages\nin the amount of any loss caused by a failure to comply with this article. Loss\ncaused by a failure to comply may include loss resulting from the debtor's inability\nto obtain, or increased costs of, alternative financing.\n(3) Except as otherwise provided in KRS 355.9-628:\n(a) A person that, at the time of the failure, was a debtor, was an obligor, or held a\nsecurity interest in or other lien on the collateral may recover damages under\nsubsection (2) of this section for its loss; and\n(b) If the collateral is consumer goods, a person that was a debtor or a secondary\nobligor at the time a secured party failed to comply with this part of this article\nmay recover for that failure in any event an amount not less t han the credit\nservice charge plus ten percent (10%) of the principal amount of the\nobligation or the time -price differential plus ten percent (10%) of the cash\nprice.\n(4) A debtor whose deficiency is eliminated under KRS 355.9 -626 may recover\ndamages for the loss of any surplus. However, a debtor or secondary obligor whose\ndeficiency is eliminated or reduced under KRS 355.9 -626 may not otherwise\nrecover under subsection (2) of this section for noncompliance with the provisions\nof this part of this article relating to collection, enforcement, disposition, or\nacceptance.\n(5) In addition to any damages recoverable under subsection (2) of this section, the\ndebtor, consumer obligor, or person named as a debtor in a filed record, as\napplicable, may recover five hundred dollars ($500) in each case from a person that:\n(a) Fails to comply with KRS 355.9-208;\n(b) Fails to comply with KRS 355.9-209;\n(c) Files a record that the person is not entitled to file under KRS 355.9-509(1);\n(d) Fails to cause the secured party o f record to file or send a termination\nstatement as required by KRS 355.9-513(1) or (3);\n(e) Fails to comply with KRS 355.9 -616(2)(a) and whose failure is part of a\npattern, or consistent with a practice, of noncompliance; or\n(f) Fails to comply with KRS 355.9-616(2)(b).\n(6) A debtor or consumer obligor may recover damages under subsection (2) of this\nsection and, in addition, five hundred dollars ($500) in each case from a person that,\nwithout reasonable cause, fails to comply with a request under KRS 355. 9-210. A\nrecipient of a request under KRS 355.9 -210 which never claimed an interest in the\ncollateral or obligations that are the subject of a request under that section has a\nreasonable excuse for failure to comply with the request within the meaning of t his\nsubsection.\n(7) If a secured party fails to comply with a request regarding a list of collateral or a\nstatement of account under KRS 355.9 -210, the secured party may claim a security\ninterest only as shown in the list or statement included in the request as against a\nperson that is reasonably misled by the failure.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33857","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:49Z","sha256":"a91569f088581ce33ac8aa229520ab5661531cbe76f02e99dc656283f83fd4b1","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.9-624","next":"us-ky/krs-355.9-626"},"notice":"GroundRules: Original legal text. Not legal advice."}