{"data":{"id":"us-ky/krs-355.9-626","jurisdiction":"us-ky","citation":"KRS 355.9-626","heading":"Action in which deficiency or surplus is in issue.","body":"(1) In an action arising from a transaction, other than a consumer transaction, in which\nthe amount of a deficiency or surplus is in issue, the following rules apply:\n(a) A secured party need not prove compliance with the provisions of this part of\nthis articl e relating to collection, enforcement, disposition, or acceptance\nunless the debtor or a secondary obligor places the secured party's compliance\nin issue.\n(b) If the secured party's compliance is placed in issue, the secured party has the\nburden of establi shing that the collection, enforcement, disposition, or\nacceptance was conducted in accordance with this part of this article.\n(c) Except as otherwise provided in KRS 355.9 -628, if a secured party fails to\nprove that the collection, enforcement, dispositio n, or acceptance was\nconducted in accordance with the provisions of this part of this article relating\nto collection, enforcement, disposition, or acceptance, the liability of a debtor\nor a secondary obligor for a deficiency is limited to an amount by whic h the\nsum of the secured obligation, expenses, and attorney's fees exceeds the\ngreater of:\n1. The proceeds of the collection, enforcement, disposition, or acceptance;\nor\n2. The amount of proceeds that would have been realized had the\nnoncomplying secured p arty proceeded in accordance with the\nprovisions of this part of this article relating to collection, enforcement,\ndisposition, or acceptance.\n(d) For purposes of paragraph (c)2. of this subsection, the amount of proceeds that\nwould have been realized is e qual to the sum of the secured obligation,\nexpenses, and attorney's fees unless the secured party proves that the amount\nis less than that sum.\n(e) If a deficiency or surplus is calculated under KRS 355.9 -615(6), the debtor or\nobligor has the burden of est ablishing that the amount of proceeds of the\ndisposition is significantly below the range of prices that a complying\ndisposition to a person other than the secured party, a person related to the\nsecured party, or a secondary obligor would have brought.\n(2) The limitation of the rules in subsection (1) of this section to transactions other than\nconsumer transactions is intended to leave to the court the determination of the\nproper rules in consumer transactions. The court may not infer from that limitation\nthe nature of the proper rule in consumer transactions and may continue to apply\nestablished approaches.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33858","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:49Z","sha256":"6f2a45d320885cc9d8b3b16052ccb952b1df4b7b4da5d16e0000f1ea00de6e58","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.9-625","next":"us-ky/krs-355.9-627"},"notice":"GroundRules: Original legal text. Not legal advice."}