45-354.

Installment loan; borrower; liability for deficiency.

(1) A borrower is not liable for a deficiency unless the licensee has disposed of the collateral in good faith and in a commercially reasonable manner.

(2) If the installment loan licensee takes possession or voluntarily accepts surrender of goods in which the licensee has a security interest to secure a loan and at the time thereof the unpaid balance due on the loan is three thousand dollars or less, the borrower is not personally liable to the installment loan licensee for the unpaid balance of the debt arising from the loan and the licensee's duty to dispose of the collateral is governed by the provisions on disposition of collateral, article 9, Uniform Commercial Code.

(3) The borrower may be liable in damages to the installment loan licensee if the borrower has wrongfully damaged the collateral or if, after default, failure to cure, and demand, the borrower has wrongfully failed to make the collateral available to the installment loan licensee.

(4) If the installment loan licensee elects to bring an action against the borrower for a debt arising from a loan, when under this section the installment loan licensee would not be entitled to a deficiency judgment if the installment loan licensee took possession of the collateral, and obtains judgment, (a) the installment loan licensee may not take possession of the collateral and (b) the collateral is not subject to levy or sale on execution or similar proceedings pursuant to the judgment.