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Can you summarize MNST 336.9-608?
UNIFORM COMMERCIAL CODE > APPLICATION OF PROCEEDS OF COLLECTION OR ENFORCEMENT; LIABILITY FOR DEFICIENCY AND RIGHT TO SURPLUS.
Short Summary
This legal document, part of the Minnesota Statutes under the Trade Regulations and Consumer Protection section, specifically falls under the Uniform Commercial Code. It governs the application of proceeds, surplus, and deficiency when a security interest or agricultural lien secures payment or performance of an obligation. The document outlines the order in which a secured party should apply or pay over the cash proceeds of collection or enforcement, including reasonable expenses, satisfaction of obligations secured by the security interest or agricultural lien, and satisfaction of obligations secured by any subordinate security interest or lien. It also addresses the requirement for a holder of a subordinate security interest or lien to furnish proof of their interest or lien upon request by a secured party. The document further states that noncash proceeds of collection and enforcement may not need to be applied unless it would be commercially unreasonable not to do so. Additionally, it establishes that a secured party shall account to and pay a debtor for any surplus, while the obligor is liable for any deficiency. The document concludes by stating that in sales of certain rights to payment, such as accounts, chattel paper, payment intangibles, or promissory notes, the debtor is not entitled to any surplus, and the obligor is not liable for any deficiency.
Whom does it apply to?
Secured parties, holders of subordinate security interests or other liens, debtors, and obligors
What does it govern?
Application of proceeds of collection or enforcement; liability for deficiency and right to surplus
What are exemptions?
No exemptions are mentioned
What are the Penalties?
No penalties are mentioned
Jurisdiction
Minnesota