84-9-625. Judicial remedies for secured party noncompliance; damages.

643 words·~3 min read·/ks/chapter-84/84-9-625

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(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), 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 if collateral is consumer goods. Except as otherwise provided in K.S.A. 2025 Supp. 84-9-628 , and amendments thereto:

(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)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% of the principal amount of the obligation or the time-price differential plus 10% of the cash price.

(d)Recovery when deficiency eliminated or reduced. A debtor whose deficiency is eliminated under K.S.A. 2025 Supp. 84-9-626 , and amendments thereto, may recover damages for the loss of any surplus. However, a debtor or secondary obligor whose deficiency is eliminated or reduced under K.S.A. 2025 Supp. 84-9-626 , and amendments thereto, may not otherwise recover under subsection

(b)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), the debtor, consumer obligor, or person named as a debtor in a filed record, as applicable, may recover $500 in each case from a person that:

(1)Fails to comply with K.S.A. 2025 Supp. 84-9-208 , and amendments thereto;

(2)fails to comply with K.S.A. 2025 Supp. 84-9-209 , and amendments thereto;

(3)files a record that the person is not entitled to file under K.S.A. 2025 Supp. 84-9-509 (a), and amendments thereto;

(4)fails to cause the secured party of record to file or send a termination statement as required by K.S.A. 2025 Supp. 84-9-513

(a)or (c), and amendments thereto;

(5)fails to comply with K.S.A. 2025 Supp. 84-9-616 (b)(1), and amendments thereto, and whose failure is part of a pattern, or consistent with a practice, of noncompliance; or

(6)fails to comply with K.S.A. 2025 Supp. 84-9-616 (b)(2), and amendments thereto.

(f)Statutory damages: Noncompliance with K.S.A. 2025 Supp. 84-9-210 , and amendments thereto. A debtor or consumer obligor may recover damages under subsection

(b)and, in addition, $500 in each case from a person that, without reasonable cause, fails to comply with a request under K.S.A. 2025 Supp. 84-9-210 , and amendments thereto. A recipient of a request under K.S.A. 2025 Supp. 84-9-210 , and amendments thereto, which never claimed an interest in the collateral or obligations that are the subject of a request under that 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 K.S.A. 2025 Supp. 84-9-210 , and amendments thereto. If a secured party fails to comply with a request regarding a list of collateral or a statement of account under K.S.A. 2025 Supp. 84-9-210 , and amendments thereto, 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.