2010 Georgia Code
TITLE 11 - COMMERCIAL CODE
ARTICLE 9 - SECURED TRANSACTIONS
PART 6 - DEFAULT
PART 2 - NONCOMPLIANCE WITH ARTICLE
§ 11-9-625 - Remedies for secured party's failure to comply with article
. Remedies for secured party's failure to comply with article.
(a) Judicial orders concerning noncompliance. If it is established that a secured party is not proceeding in accordance with this article, a court may order or restrain collection, enforcement, or disposition of collateral on appropriate terms and conditions.
(b) Damages for noncompliance. Subject to subsections (c), (d), and (f) of this Code section, a person is liable for damages in the amount of any loss caused by a failure to comply with this article. Loss caused by a failure to comply may include loss resulting from the debtor's inability to obtain, or increased costs of, alternative financing.
(c) Persons entitled to recover damages; statutory damages in consumer goods transaction. Except as otherwise provided in Code Section 11-9-628
(1) A person that, at the time of the failure, was a debtor, was an obligor, or held a security interest in or other lien on the collateral may recover damages under subsection (b) of this Code section for its loss; and
(2) If the collateral is consumer goods, a person that was a debtor or a secondary obligor at the time a secured party failed to comply with this part may recover for that failure in any event an amount not less than the credit service charge plus 10 percent of the principal amount of the obligation or the time price differential plus 10 percent of the cash price.
(d) Recovery when deficiency eliminated or reduced. A debtor whose deficiency is eliminated under Code Section 11-9-626
may recover damages for the loss of any surplus. However, a debtor or secondary obligor whose deficiency is eliminated or reduced under Code Section 11-9-626
may not otherwise recover under subsection (b) of this Code section for noncompliance with the provisions of this part relating to collection, enforcement, disposition, or acceptance.
(e) Statutory damages; noncompliance with specified provisions. In addition to any damages recoverable under subsection (b) of this Code section, the debtor, consumer obligor, or person named as a debtor in a filed record, as applicable, may recover $250.00 in each case from a person that:
(1) Fails to comply with Code Section 11-9-208
(2) Fails to comply with Code Section 11-9-209
(3) Files a record that the person is not entitled to file under subsection (a) of Code Section 11-9-509
(4) Fails to cause the secured party of record to file or send a termination statement as required by subsection (a) or (c) of Code Section 11-9-513
(5) Fails to comply with paragraph (1) of subsection (b) of Code Section 11-9-616
and whose failure is part of a pattern, or consistent with a practice, of noncompliance; or
(6) Fails to comply with paragraph (2) of subsection (b) of Code Section 11-9-616
(f) Statutory damages; noncompliance with Code Section 11-9-210
. A debtor or consumer obligor may recover damages under subsection (b) of this Code section and, in addition, $250.00 in each case from a person that, without reasonable cause, fails to comply with a request under Code Section 11-9-210
. A recipient of a request under Code Section 11-9-210
which never claimed an interest in the collateral or obligations that are the subject of a request under that Code section has a reasonable excuse for failure to comply with the request within the meaning of this subsection.
(g) Limitation of security interest; noncompliance with Code Section 11-9-210
. If a secured party fails to comply with a request regarding a list of collateral or a statement of account under Code Section 11-9-210
, the secured party may claim a security interest only as shown in the list or statement included in the request as against a person that is reasonably misled by the failure.
Graham Syfert - Jacksonville Lawyer