2023 Tennessee Code › Title 47 - COMMERCIAL INSTRUMENTS AND TRANSACTIONS (§§ 47-1-101 — 47-50-121) › Chapter 9 - SECURED TRANSACTIONS (§§ 47-9-101 — 47-9-809) › Part 6 - DEFAULT (§§ 47-9-601 — 47-9-628) › Section 47-9-625 - Remedies for secured party's failure to comply with chapter

(a)
Judicial orders concerning noncompliance.
If it is established that a secured party is not proceeding in accordance with this chapter, 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 chapter. 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 in consumer-goods transaction.
Except as otherwise provided in §
47-9-628
:
(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 ten percent (10%) of the principal amount of the obligation or the time-price differential plus ten percent (10%) of the cash price.
(d)
Recovery when deficiency eliminated or reduced.
A debtor whose deficiency is eliminated under §
47-9-626
may recover damages for the loss of any surplus. However, a debtor or secondary obligor whose deficiency is eliminated or reduced under §
47-9-626
may not otherwise recover under subsection (b) for noncompliance with 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 five hundred dollars ($500) in each case from a person that:
(1)
fails to comply with §
47-9-208
;
(2)
fails to comply with §
47-9-209
;
(3)
files a record that the person is not entitled to file under §
47-9-509(a)
and fails to file a termination statement within ten (10) days after receiving an authenticated demand;
(4)
fails to cause the secured party of record to file or send a termination statement;
(A)
as required by §
47-9-513(a)
within ten (10) days after receiving an authenticated demand or
(B)
as required by §
47-9-513(c)
;
(5)
fails to comply with §
47-9-616(b)(1)
and whose failure is part of a pattern, or consistent with a practice, of noncompliance; or
(6)
fails to comply with §
47-9-616(b)(2)
.
(f)
Statutory damages: noncompliance with §
47-9-210
.
A debtor or consumer obligor may recover damages under subsection (b) and, in addition, five hundred dollars ($500) in each case from a person that, without reasonable cause, fails to comply with a request under §
47-9-210
. A recipient of a request under §
47-9-210
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 (f).
(g)
Limitation of security interest: noncompliance with §
47-9-210
.
If a secured party fails to comply with a request regarding a list of collateral or a statement of account under §
47-9-210
, 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.
Acts 2000, ch. 846, § 1.