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Repossessions: OHIO

UCC Article 9: Ohio Rev. Code Ann. §§ 1309.101 to 1309.709 (West)

Significant non-uniform amendments: Presumes that ten days is sufficient notice of disposition for both consumer and commercial transactions; adopts rebuttable presumption rule for both commercial and consumer transactions; reduces any damages recovered by debtor or secondary obligor under § 9-625(c) by amount that secured obligation plus expenses and attorney fees exceeds proceeds, regardless of whether deficiency is reduced or eliminated under § 9-626.

Repossessions: OKLAHOMA

UCC Article 9: Okla. Stat. tit. 12A, §§ 1-9-101 to 1-9-710

Significant non-uniform amendments: Makes Article 9 applicable to deposit accounts even in consumer transactions.

UCC Article 2A: Okla. Stat. tit. 12A, §§ 2A-101 to 2A-532

UCC Article 3: Okla. Stat. tit. 12A, §§ 3-101 to 3-605

Consumer leasing law: None.

Repossessions: PENNSYLVANIA

UCC Article 9: 13 Pa. Cons. Stat. §§ 9101–9710

Significant non-uniform amendments: None.

UCC Article 2A: 13 Pa. Cons. Stat. §§ 2A101–2A532

UCC Article 3: 13 Pa. Cons. Stat. §§ 3101–3605

Consumer leasing law: None.

Rent-to-own statute: 42 Pa. Stat. and Cons. Stat. Ann. §§ 6901–6911 (West)

Repossessions: PUERTO RICO

UCC Article 9: P.R. Laws Ann. tit. 19, §§ 2211–2409 (effective January 17, 2013)

Significant non-uniform amendments: None.

UCC Article 2A: Not adopted.

UCC Article 3: P.R. Laws Ann. tit. 19, §§ 501–755

Consumer leasing law: P.R. Laws Ann. tit. 10, §§ 2401–2426

Rent-to-own statute: P.R. Laws Ann. tit. 10, §§ 2451–2466

Repossessions: RHODE ISLAND

UCC Article 9: R.I. Gen. Laws §§ 6A-9-101 to 6A-9-710

Significant non-uniform amendments: Requires that repossessor notify police unless debtor is aware of repossession; adds restrictions on cross-collateral.

UCC Article 2A: R.I. Gen. Laws §§ 6A-2.1-101 to 6A-2.1-532

UCC Article 3: R.I. Gen. Laws §§ 6A-3-101 to 6A-3-606

Consumer leasing law: None.

Repossessions: SOUTH CAROLINA

UCC Article 9: S.C. Code Ann. §§ 36-9-101 to 36-9-709

Significant non-uniform amendments: Public sales that meet certain requirements are conclusively considered to be commercially reasonable.

UCC Article 2A: S.C. Code Ann. §§ 36-2A-101 to 36-2A-532

UCC Article 3: S.C. Code Ann. §§ 36-3-101 to 36-3-201

Consumer leasing law: None.

Repossessions: SOUTH DAKOTA

UCC Article 9: S.D. Codified Laws §§ 57A-9-101 to 57A-9-709

Significant non-uniform amendments: General rules for determining when a security interest loses purchase-money status apply to consumer transactions; eliminates $500 statutory damages for miscellaneous violations; adopts rebuttable presumption rule for both commercial and consumer transactions.

UCC Article 2A: S.D. Codified Laws §§ 57A-2A-101 to 57A-2A-531

Repossessions: TEXAS

UCC Article 9: Tex. Bus. & Com. Code Ann. §§ 9.101 to 9.709 (West)

Significant non-uniform amendments: Amends § 9-109(d) so that Article 9 applies to non-negotiable certificates of deposit.

UCC Article 2A: Tex. Bus. & Com. Code Ann. §§ 2A.101 to 2A.532 (West)

UCC Article 3: Tex. Bus. & Com. Code Ann. §§ 3.101 to 3.604 (West)

Consumer leasing law: None.

Repossessions: UTAH

UCC Article 9: Utah Code Ann. §§ 70A-9a-101 to 70A-9a-709 (West)

Significant non-uniform amendments: None.

UCC Article 2A: Utah Code Ann. §§ 70A-2a-101 to 70A-2a-534 (West)

UCC Article 3: Utah Code Ann. §§ 70A-3-101 to 70A-3-605 (West)

Consumer leasing law: None.

Rent-to-own statute: Utah Code Ann. §§ 15-8-1 to 15-8-12 (West)

Repossessions: VERMONT

UCC Article 9: Vt. Stat. Ann. tit. 9A, §§ 9-101 to 9-709

Significant non-uniform amendments: Allows § 9-625(b) remedies for failure to give required notice of strict foreclosure; only secured party can be liable for actual damages and $500 statutory damages for most violations.

UCC Article 2A: Vt. Stat. Ann. tit. 9A, §§ 2A-101 to 2A-532

UCC Article 3: Vt. Stat. Ann. tit. 9A, §§ 3-101 to 3-605

Repossessions: VIRGIN ISLANDS

UCC Article 9: V.I. Code Ann. tit. 11A, §§ 9-101 to 9-709

Significant non-uniform amendments: Effective date is first day of next fiscal quarter following enactment date of February 20, 2002.

UCC Article 2A: V.I. Code Ann. tit. 11A, §§ 2A-101 to 2A-532

UCC Article 3: V.I. Code Ann. tit. 11A, §§ 3-101 to 3-605

Consumer leasing law: None.

Repossessions: WEST VIRGINIA

UCC Article 9: W. Va. Code §§ 46-9-101 to 46-9-709

Significant non-uniform amendments: None.

UCC Article 2A: W. Va. Code §§ 46-2A-101 to 46-2A-532

UCC Article 3: W. Va. Code §§ 46-3-101 to 46-3-605

Consumer leasing law: None.

Rent-to-own statute: W. Va. Code §§ 46B-1-1 to 46B-8-3

Repossessions: WISCONSIN

UCC Article 9: Wis. Stat. §§ 409.101 to 409.710

Significant non-uniform amendments: Did not enact new $500 statutory damages provision.

UCC Article 2A: Wis. Stat. §§ 411.101 to 411.901

UCC Article 3: Wis. Stat. §§ 403.102 to 403.605

Consumer leasing law: Wis. Stat. §§ 429.101 to 429.301

Rent-to-own statute: None.

Repossessions: WYOMING

UCC Article 9: Wyo. Stat. Ann. §§ 34.1-9-101 to 34.1-9-709

Significant non-uniform amendments: None.

UCC Article 2A: Wyo. Stat. Ann. §§ 34.1-2.A-101 to 34.1-2.A-532

UCC Article 3: Wyo. Stat. Ann. §§ 34.1-3-101 to 34.1-3-905

Consumer leasing law: None.

Rent-to-own statute: Wyo. Stat. Ann. §§ 40-19-101 to 40-29-120

Repossessions: 6.6.4.6 State Credit Statutes

State retail installment sales acts or other consumer credit laws often limit the charges that can be imposed in a credit transaction, and thus may prohibit a charge for a disabling device or for reinstating the contract after the vehicle has been disabled. In addition, if the device was not installed at the time of the original purchase, installing it upon default may violate a state credit code which lists the only steps that a creditor is allowed to take upon default.

Repossessions: 12.1.1 Importance of Defending a Deficiency Action

A creditor’s deficiency claim arises when the creditor sells repossessed collateral for an amount insufficient to pay off both the loan and the creditor’s repossession and disposition expenses. The deficiency is the difference between what is owed the creditor (the amount due on the loan plus the creditor’s expenses) and what is realized by the sale of the collateral. Although the sale may result in a surplus that must be paid to the debtor,1 usually the sale of repossessed consumer collateral results in a deficiency.

Repossessions: 12.1.2 How to Approach Defending a Deficiency Action

This chapter examines how to defend a deficiency action. However, an attorney defending a deficiency action should not merely think defensively. Usually when there is a basis to defend a deficiency suit there is also a basis to assert counterclaims under the UCC, other statutes, and the common law. Minimum statutory damages under U.C.C.

Repossessions: 12.2.1 Overview

The creditor has a right to repayment in full, and can bring a court action to recover the full amount of the debt. But, once the creditor seizes collateral securing that debt, the creditor’s right to repayment in full is limited by the UCC, other state law, and case law.4 That is, after disposing of the collateral, the creditor’s right to seek repayment of the balance due on the note (the deficiency) is restricted in certain respects.