54-4-72 Default in repayment of title loan--Remedy--Exception--Sale of reposed vehicle--Refund of ...
Default in repayment of title loan--Remedy--Exception--Sale of reposed vehicle--Refund of surplus less expenses.
If a debtor defaults in the repayment of a title loan, the title lender's
sole remedy is to seek possession and sale of the motor vehicle securing the loan, and the title lender
may not pursue the debtor personally in any action or proceeding for repayment of the loan or for
any deficiency after the sale. The title lender shall return to the debtor any surplus obtained after the
sale that is in excess of the amount owed on the loan after any reasonable expenses of repossession,
storage, and sale, including court costs and attorney's fees have been deducted. The remedy
limitation provided in this section does not apply in the following circumstances:
If a debtor obtains a title loan from a title lender under false pretenses by not disclosing
the existence of a valid prior lien or security interest affecting the motor vehicle; or
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If the debtor intentionally conceals, impairs, or destroys the collateral.
SL 2006, ch 245, § 14.
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