HARRY HUGHES, Governor

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(2) UNDER PARAGRAPH (1) OF THIS SUBSECTION, THE
PAYMENT BY THE CONSUMER BORROWER OF THE ENTIRE BALANCE DUE UNDER
THE AGREEMENT SHALL:

(I) CONSTITUTE REDEMPTION BY THE CONSUMER
BORROWER; AND

(II) ENTITLE THE CONSUMER BORROWER TO TAKE
POSSESSION OF THE PROPERTY.

(j) The credit grantor shall sell the property that was
repossessed at public auction. At least 10 days before the sale,
the credit grantor shall notify the consumer borrower in writing
sent by registered or certified mail sent to his last known
address of the time and place of sale.

(k) (1) The provisions of this subsection apply to a public
sale of property which secured a loan in excess of $2,000 at the
time the loan was made.

(2) The proceeds of a sale to which this subsection
applies shall be applied, in the following order, to;

(i) The actual and reasonable cost of the sale;

(ii) The actual and reasonable cost of retaking
and storing the property; and

(iii) The unpaid balance owing under the
agreement at the time the property was repossessed.

(3)  The credit grantor shall furnish to the consumer
borrower a written statement which shows the distribution of the
proceeds.

(4)  If the provisions of this section, including the
requirement of furnishing a notice following repossession, are
not followed, the credit grantor shall not be entitled to any
deficiency judgment to which he would be entitled under the loan
agreement.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect July 1, 1986.

Approved May 27, 1986.