Secured Transactions:

In a secured consumer credit transaction, a creditor generally may not accelerate maturity of the unpaid balance of the obligation or take possession of collateral after a default until fourteen (14) days after a written notice of the consumer's right to cure is given. (9A M.R.S.A. 5-111.) If the consumer cured the default by tendering the amount of all unpaid sums due at the time of tender, without acceleration, plus any delinquency or deferral charges, the consumer's right under the agreement is restored. (Section 45-107.)

Subject to the notice requirement in a consumer credit transaction, a creditor generally is entitled to recover possession of collateral upon the default of a debtor on a secured transaction. In obtaining possession of collateral, a creditor may do so without judicial process only if possession can be taken without entry into a dwelling, unless such entry has been authorized after default, and without the use of force or other breach of peace. (9A M.R.S.A. 5-112.)

After a debtor's default, a secured creditor may sell, lease or otherwise dispose of the collateral in a commercially reasonable manner. (11 M.R.S.A. 9-504.) Any time before the disposition of the collateral, a debtor may have a right to redeem the collateral by tendering full payment of the obligation owed and all reasonable expenses incurred by the creditor. (11 M.R.S.A. 9-506.)

The disposition of the collateral may be conducted by public or private sale. Reasonable notice of the time and place of the sale is generally required to be given to other secured creditors and the debtor. (11 M.R.S.A. 9-504(3).) A creditor must account to the debtor any surplus, and unless otherwise agreed, the debtor is generally liable for any deficiency. (11 M.R.S.A. 9-502(2).) However, in a consumer credit transaction, if the original amount financed is $2,000.00 or less, the creditor may not recover a deficiency. (9A M.R.S.A. 5-103(2).)

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