List what a consumer surplus or deficiency explanation must show
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- In a consumer-goods transaction, the tool lists the amount of any surplus or deficiency, the calculation figures the lawyer supplies, a statement that future debits, credits, charges, rebates, and expenses may affect the amount, and a telephone number or mailing address. It compares the sending date with payment of the surplus, the first written demand for the deficiency, and the date a request was received, including the 14th day after that request. It does not write the explanation.
- What the lawyer must review
- UCC Sections 9-616 and 9-611. In a consumer-goods transaction in which the debtor is entitled to a surplus or a consumer obligor is liable for a deficiency under Section 9-615, Section 9-616(b) requires the secured party to send an explanation after the disposition, before or when the secured party accounts to the debtor and pays any surplus or first makes written demand on the consumer obligor for the deficiency, and within 14 days after receipt of a request. In the case of a consumer obligor who is liable for a deficiency, the secured party may instead, within 14 days after receipt of a request, send a record waiving the secured party's right to a deficiency. An explanation states the amount of the surplus or deficiency, provides an explanation in accordance with subsection (c) of how the secured party calculated it, states if applicable that future debits, credits, charges, including additional credit service charges or interest, rebates, and expenses may affect the amount, and provides a telephone number or mailing address from which additional information is available. Subsection (c) requires specified information in a specified order, beginning with the aggregate amount of the obligations secured. Section 9-611 is the separate rule on who must receive an authenticated notification before disposition. The lawyer writes any explanation that is sent.
- Written for / version
- United States versionUS
Who does what
| Role | What they do |
|---|---|
| Assistance | Potential support includes identifying points for review and assembling provisional schedules. Confirm the tool’s capability and permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Trace every relied-on figure to its source, confirm dates and assumptions, and independently recalculate totals or derived amounts.
- Preserve original files and relevant metadata. Document provenance and handling, and seek forensic review where authenticity needs to be resolved.
- Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.