Does this say what I think it says?

Discussion in 'Credit Talk' started by darkdoj, Jul 23, 2004.

  1. darkdoj

    darkdoj Well-Known Member

    CIVIL CODE
    SECTION 1812.2-1812.5

    1812.2. In the event of any default by the buyer in the performance
    of his obligations under a contract or installment account, the
    holder, pursuant to any rights granted therein, may proceed to
    recover judgment for the balance due without retaking the goods, or
    he may retake the goods and proceed as hereinafter provided. If he
    retakes the goods, he shall, within 10 days, give notice to the buyer
    of his intention to sell the goods at public sale or give notice to
    the buyer of his intention to retain the goods in satisfaction of the
    balance due. The notice must state the amount of the overdue
    payments, that the buyer must pay, if he pays within 10 days of the
    notice, in order to redeem the goods. In either case the buyer shall
    have an absolute right to redeem the goods within 10 days after the
    notice is given by paying or tendering the amount owing under the
    contract. If the holder gives notice of election to sell the goods
    the buyer shall also have the absolute right to redeem the goods at
    any time before sale by paying or tendering the amounts specified
    above and also any expense reasonably incurred by the seller or
    holder in good faith in repairing, reconditioning the goods or
    preparing them for sale. If the holder gives notice of his intention
    to retain the goods in satisfaction of the indebtedness he shall be
    deemed to have done so at the end of the 10-day period if the goods
    are not redeemed; at the time the notice is given, the holder shall
    furnish the buyer a written statement of the sum due under the
    contract and the expenses provided for in this section. For failure
    to render such a statement the holder shall forfeit to the buyer ten
    dollars ($10) and also be liable to him for all damages suffered
    because of such failure.

    1812.3. The notice provided for in Section 1812.2 shall be given to
    the buyer and any other person liable by causing it to be delivered
    personally or to be deposited in the United States mail addressed to
    the buyer or to such other person at his last known address and shall
    advise the buyer or such other person of his right to redeem as
    provided for in Section 1812.2. If the holder determines to sell the
    goods at public sale he shall give notice of the time and place of
    sale at least 10 days before the date of sale by delivering a copy of
    the notice personally to the buyer or other person liable or
    depositing the same in the United States mail addressed to the buyer
    or such other person at his last known address.


    1812.4. The proceeds of a resale shall be applied (1) to the
    payment of the expenses thereof, (2) to the payment of any expenses
    of retaking, including reasonable attorney's fees actually incurred,
    and of any expenses of keeping, storing, repairing, reconditioning or
    preparing the goods for sale to which the holder may be entitled,
    (3) to the satisfaction of the balance due under the contract. Any
    sum remaining after the satisfaction of such claims shall be paid to
    the buyer.


    1812.5. If the proceeds of the sale are not sufficient to cover
    items (1), (2) and (3) of Section 1812.4, the holder may not recover
    the deficiency from the buyer or from anyone who has succeeded to the
    obligations of the buyer.

    Does this mean that in California, there cannot be a deficiency balance owed? According to 1812.5 - If property is sold at auction, they can deduct for reconditioning, storage..etc... from the sales price, and then apply the balance to the amount owed. But if the proceeds of the sale aren't sufficient enough to cover the deductions, the holder cannot recover the deficiency from the buyer or anyone who purchases the vehicle at auction or succeeds the buyer.

    Does this mean what it actually reads as? Did someone miss this?
     
  2. lbrown59

    lbrown59 Well-Known Member

    Does this mean what it actually reads as? Did someone miss this?
     
  3. Why Chat

    Why Chat Well-Known Member

    No, it means the creditor can not get the deficiency from the BUYER at the resale.

    If you go to my website, linked below, and look for the repo deficiency letter, it has a link to the legal material you need.
     
  4. darkdoj

    darkdoj Well-Known Member

    I didn't need the info, but thanks. I was just looking through some old notes and ran accross it. I'll talk to my attorney about it, because it does have some conflicting language.
     

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