<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><meta http-equiv='content-language' content='en-us'/><title>SDLRC - Codified Law 57A-9-626 - Action in which amount of deficiency or surplus is in issue. </title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s2073781Normal { margin-top: 0; margin-bottom: 0; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; } span.s2073781SENU { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s2073781CL { font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } p.s2073781Normal-000000 { margin-top: 0; margin-bottom: 0; text-indent: 0.50in; text-align: justify; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; margin-left: 0; margin-right: 0; 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} </style></head><body><div><p dir="ltr" class="s2073781Normal"><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-9-626"><span class="s2073781SENU">57A-9-626</span></a><span xml:space="preserve" class="s2073781SENU">. </span><span class="s2073781CL">Action in which amount of deficiency or surplus is in issue.</span></p><p dir="ltr" class="s2073781Normal-000000"><span class="s2073781DefaultParagraphFont">(a) In an action arising from a transaction in which the amount of a deficiency or surplus is in issue, the following rules apply:</span></p><p dir="ltr" class="s2073781Normal-000001"><span class="s2073781DefaultParagraphFont">(1)    A secured party need not prove compliance with the provisions of this part relating to collection, enforcement, disposition, or acceptance unless the debtor or a secondary obligor places the secured party's compliance in issue.</span></p><p dir="ltr" class="s2073781Normal-000001"><span class="s2073781DefaultParagraphFont">(2)    If the secured party's compliance is placed in issue, the secured party has the burden of establishing that the collection, enforcement, disposition, or acceptance was conducted in accordance with this part.</span></p><p dir="ltr" class="s2073781Normal-000001"><span xml:space="preserve" class="s2073781DefaultParagraphFont">(3)    Except as otherwise provided in § </span><a href="https://sdlegislature.gov/Statutes/Codified_Laws/DisplayStatute.aspx?Type=Statute&amp;Statute=57A-9-628"><span class="s2073781DefaultParagraphFont">57A-9-628</span></a><span class="s2073781DefaultParagraphFont">, if a secured party fails to prove that the collection, enforcement, disposition, or acceptance was conducted in accordance with the provisions of this part relating to collection, enforcement, disposition, or acceptance, the liability of a debtor or a secondary obligor for a deficiency is limited to an amount by which the sum of the secured obligation, expenses, and attorney's fees exceeds the greater of:</span></p><p dir="ltr" class="s2073781Normal-000002"><span class="s2073781DefaultParagraphFont">(A)    The proceeds of the collection, enforcement, disposition, or acceptance; or</span></p><p dir="ltr" class="s2073781Normal-000002"><span class="s2073781DefaultParagraphFont">(B)    The amount of proceeds that would have been realized had the noncomplying secured party proceeded in accordance with the provisions of this part relating to collection, enforcement, disposition, or acceptance.</span></p><p dir="ltr" class="s2073781Normal-000001"><span class="s2073781DefaultParagraphFont">(4)    For purposes of paragraph (3)(B), the amount of proceeds that would have been realized is equal to the sum of the secured obligation, expenses, and attorney's fees unless the secured party proves that the amount is less than that sum.</span></p><p dir="ltr" class="s2073781Normal-000001"><span class="s2073781DefaultParagraphFont">(5)    If a deficiency or surplus is calculated under § 57A-9-615(f), the debtor or obligor has the burden of establishing that the amount of proceeds of the disposition is significantly below the range of prices that a complying disposition to a person other than the secured party, a person related to the secured party, or a secondary obligor would have brought.</span></p><p dir="ltr" class="s2073781Normal"><span xml:space="preserve" class="s2073781000003"> </span></p><p dir="ltr" class="s2073781Normal"><span class="s2073781SCL">Source:</span><span xml:space="preserve" class="s2073781SCL-000004"> SL 2000, ch 231.</span></p></div></body></html>