{"data":{"id":"us-nc/n.c.-gen.-stat.-25-9-616","jurisdiction":"us-nc","citation":"N.C. Gen. Stat. § 25-9-616","heading":"Explanation of calculation of surplus or deficiency.","body":"(a)\tDefinitions. - In this section, the following definitions apply:\n(1)\tExplanation. - A record that does all of the following:\na.\tStates the amount of the surplus or deficiency.\nb.\tProvides information in accordance with subsection (c) of this section explaining how the secured party calculated the surplus or deficiency.\nc.\tStates, 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.\nd.\tProvides a telephone number or mailing address from which additional information concerning the transaction is available.\n(2)\tRequest. - A record to which all of the following apply:\na.\tIt is signed by a debtor or consumer obligor.\nb.\tIt requests that the recipient provide an explanation.\nc.\tIt is sent after disposition of the collateral under G.S. 25-9-610.\n(b)\tExplanation of Calculation. - In a consumer-goods transaction in which the debtor is entitled to a surplus or a consumer obligor is liable for a deficiency under G.S. 25-9-615, the secured party shall do either of the following:\n(1)\tSend an explanation to the debtor or consumer obligor, as applicable, after the disposition and in accordance with both of the following:\na.\tBefore or when the secured party accounts to the debtor and pays any surplus or first makes demand in a record on the consumer obligor after the disposition for payment of the deficiency.\nb.\tWithin 14 days after receipt of a request.\n(2)\tIn the case of a consumer obligor who is liable for a deficiency, within 14 days after receipt of a request, send to the consumer obligor a record waiving the secured party's right to a deficiency.\n(c)\tRequired Information. - To comply with sub-subdivision (a)(1)b. of this section, an explanation shall provide the following information in the following order:\n(1)\tThe aggregate amount 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 as follows:\na.\tIf the secured party takes or receives possession of the collateral after default, not more than 35 days before the secured party takes or receives possession.\nb.\tIf the secured party takes or receives possession of the collateral before default or does not take possession of the collateral, not more than 35 days before the disposition.\n(2)\tThe amount of proceeds of the disposition.\n(3)\tThe aggregate amount of the obligations after deducting the amount of proceeds.\n(4)\tThe amount, in the aggregate or by type, and types of expenses, including expenses of retaking, holding, preparing for disposition, processing, and disposing of the collateral, and attorneys' fees secured by the collateral that are known to the secured party and relate to the current disposition.\n(5)\tThe 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 that are not reflected in the amount in subdivision (1) of this subsection.\n(6)\tThe amount of the surplus or deficiency.\n(d)\tSubstantial Compliance. - A particular phrasing of the explanation is not required. An explanation complying substantially with the requirements of subsection (a) of this section is sufficient, even if it includes minor errors that are not seriously misleading.\n(e)\tCharges for Responses. - A debtor or consumer obligor is entitled without charge to one response to a request under this section during any six-month period in which the secured party did not send to the debtor or consumer obligor an explanation pursuant to subdivision (b)(1) of this section. The secured party may require payment of a charge not exceeding twenty-five dollars ($25.00) for each additional response. (2000-169, s. 1; 2025-25, s. 102.)","path":["Chapter 25. Uniform Commercial Code.","Article 9. Secured Transactions.","Part 6. Default."],"source_url":"https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_25/GS_25-9-616.html","current_through":"S.L. 2026-30","vintage":"","retrieved_at":"2026-08-27T17:58:47Z","sha256":"9edeccb35afa60684cd95b1525b346bfeed47e2a9a124c0c1b63f328a1249051","source_id":"us-nc","stale":false,"prev":"us-nc/n.c.-gen.-stat.-25-9-615","next":"us-nc/n.c.-gen.-stat.-25-9-617"},"notice":"GroundRules: Original legal text. Not legal advice."}