NMSA 55-9-614. Contents and form of notification before disposition of

55-9-614. Contents and form of notification before disposition of collateral; consumer-goods transaction. (a) In a consumer-goods transaction, the following rules apply: (1) A notification of disposition must provide the following information: (A) the information specified in Paragraph (1) of Subsection (a) of Section 55- 9-613 NMSA 1978; (B) a description of any liability for a deficiency of the person to which the notification is sent; (C) a telephone number from which the amount that must be paid to the secured party to redeem the collateral under Section 55-9-623 NMSA 1978 is available; and (D) a telephone number or mailing address from which additional information concerning the disposition and the obligation secured is available. (2) A particular phrasing of the notification is not required. (3) The following form of notification, when completed in accordance with the instructions in Subsection (b) of this section, provides sufficient information: "(Name and address of secured party) (Date) NOTICE OF OUR PLAN TO SELL PROPERTY (Name and address of any obligor who is also a debtor) Subject: (Identify transaction) We have your (describe collateral) because you broke promises in our agreement. {1} We will sell (describe collateral) at public sale. A sale could include a lease or license. The sale will be held as follows: (Date) (Time) (Place) You may attend the sale and bring bidders if you want. {2} We will sell (describe collateral) at private sale sometime after (date). A sale could include a lease or license. {3} The money that we get from the sale, after paying our costs, will reduce the amount you owe. If we get less money than you owe, you (will or will not, as applicable) still owe us the difference. If we get more money than you owe, you will get the extra money, unless we must pay it to someone else. {4} You can get the property back at any time before we sell it by paying us the full amount you owe, not just the past due payments, including our expenses. To learn the exact amount you must pay, call us at (telephone number). {5} If you want us to explain to you in (writing) (writing or in (description of electronic record) (description of electronic record) how we have figured the amount that you owe us, {6} call us at (telephone number) (or) (write us at (secured party's address)) (or contact us by (description of electronic communication method)) {7} and request (a written explanation) (a written explanation or an explanation in (description of electronic record)) (an explanation in (description of electronic record)). {8} We will charge you $ (amount) for the explanation if we sent you another written explanation of the amount you owe us within the last six months. {9} If you need more information about the sale, (call us at (telephone number)) (or) (write us at (secured party's address)) (or contact us by (description of electronic communication method)). {10} We are sending this notice to the following other people who have an interest in (describe collateral) or who owe money under your agreement: (Names of all other debtors and obligors, if any)." (4) The form of notification provided in Paragraph (3) of this subsection is sufficient even if additional information appears at the end of the form. (5) The form of notification provided in Paragraph (3) of this subsection is sufficient even if it includes an error regarding information that is not required pursuant to Paragraph (1) of this subsection, unless the error is misleading with respect to rights that arise pursuant to Chapter 55, Article 9 NMSA 1978. (6) If notification under this section is not in the form provided in Paragraph (3) of this subsection, law other than Chapter 55, Article 9 NMSA 1978 shall determine the effect of including information that is not required pursuant to Paragraph (1) of this subsection. (b) The following instructions apply to the form of notification in Paragraph (3) of Subsection (a) of this section: (1) the instructions in this subsection refer to the numbers in braces before items in the form of notification in Paragraph (3) of Subsection (a) of this section. Do not include the numbers or braces in the notification. The numbers and braces are used only for the purpose of these instructions; (2) include and complete either Item {1}, if the notification relates to a public disposition of the collateral, or Item {2}, if the notification relates to a private disposition of the collateral; (3) include and complete Items {3}, {4}, {5}, {6} and {7}; (4) in Item {5}, include and complete any one of the three alternative methods for the explanation: writing, writing or electronic record or electronic record; (5) in Item {6}, include the telephone number. In addition, the sender may include and complete either or both of the two additional alternative methods of communication, those being writing or electronic communication, for the recipient of the notification to communicate with the sender. Neither of the two additional methods of communication is required to be included; (6) in Item {7}, include and complete the method or methods for the explanation included in Item {5}: writing, writing or electronic record or electronic record; (7) include and complete Item {8} only if a written explanation is included in Item {5} as a method for communicating the explanation and the sender will charge the recipient for another written explanation; (8) in Item {9}, include either the telephone number or the address or both the telephone number and the address. In addition, the sender may include and complete the additional electronic method of communication for the recipient of the notification to communicate with the sender. The additional method of electronic communication is not required to be included; and (9) if Item {10} does not apply, insert "None" after "agreement:"." History: 1978 Comp., § 55-9-614, enacted by Laws 2001, ch. 139, § 111; 2023, ch. 142, § 87. OFFICIAL COMMENTS UCC Official Comments © by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved. 1. Source. New. 2. Notification in Consumer-Goods Transactions. Paragraph (1) sets forth the information required for a reasonable notification in a consumer-goods transaction. A notification that lacks any of the information set forth in paragraph (1) is insufficient as a matter of law. Compare section 9-613(2), under which the trier of fact may find a notification to be sufficient even if it lacks some information listed in paragraph (1) of that section. 3. Safe-Harbor Form of Notification; Errors in Information. Although paragraph (2) provides that a particular phrasing of a notification is not required, paragraph (3) specifies a safe-harbor form that, when properly completed, satisfies paragraph (1). Paragraphs (4), (5), and (6) contain special rules applicable to erroneous and additional information. Under paragraph (4), a notification in the safe-harbor form specified in paragraph (3) is not rendered insufficient if it contains additional information at the end of the form. Paragraph (5) provides that nonmisleading errors in information contained in a notification are permitted if the safe-harbor form is used and if the errors are in information not required by paragraph (1). Finally, if a notification is in a form other than the paragraph (3) safe-harbor form, other law determines the effect of including in the notification information other than that required by paragraph (1). 4. Style Changes in Safe-Harbor Form and Medium Neutrality. No change in substance is intended by the changes in style to the form provided in paragraph (3) of the pre-2022 text of this section, except that in furtherance of medium neutrality references to "electronic record" and "electronic communication method" have been added to the form. However, the presentation and explanation of how to use the form has been simplified and clarified.