{"data":{"id":"us-nj/n.j.-stat.-12a-9-616","jurisdiction":"us-nj","citation":"N.J. Stat. § 12A:9-616","heading":"Explanation of calculation of surplus or deficiency.","body":"Explanation of Calculation of Surplus or Deficiency.\n(a)\tDefinitions.  In this section:\n(1)\t\"Explanation\" means a writing that:\n(A)\tstates the amount of the surplus or deficiency;\n(B)\tprovides an explanation, in accordance with subsection (c) of how the secured party calculated the surplus or deficiency;\n(C)\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; and\n(D)\tprovides a telephone number or mailing address from which additional information concerning the transaction is available.\n(2)\t\"Request\" means a record:\n(A)\tauthenticated by a debtor or consumer obligor;\n(B)\trequesting that the recipient provide an explanation; and\n(C)\tsent after disposition of the collateral under 12A: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 12A:9-615, the secured party shall:\n(1)\tsend an explanation to the debtor or consumer obligor, as applicable, after the disposition and:\n(A)\tbefore or when the secured party accounts to the debtor and pays any surplus or first makes written demand on the consumer obligor after the disposition for payment of the deficiency; and\n(B)\twithin 14 days after receipt of a request; or\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 subsection (a) (1) (B), a writing must 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:\n(A)\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; or\n(B)\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 attorney's fees secured by the collateral which 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 which are not reflected in the amount in paragraph (1); and\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) 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  subsection (b) (1).  The secured party may require payment of a charge not exceeding $25 for each additional response.\nL.2001, c.117, s.1; amended 2001, c.386, s.105.","path":["TITLE 12A COMMERCIAL TRANSACTIONS"],"source_url":"https://pub.njleg.state.nj.us/statutes/STATUTES-TEXT.zip","current_through":"P.L.2025, c.405, and J.R.22","vintage":"","retrieved_at":"2026-08-27T17:54:13Z","sha256":"67edb2d211431b6e0fcd85bd0e068263b5bc873bfb33bef84714733dccb2c886","source_id":"us-nj","stale":true,"prev":"us-nj/n.j.-stat.-12a-9-615","next":"us-nj/n.j.-stat.-12a-9-617"},"notice":"GroundRules: Original legal text. Not legal advice."}