Deficiency or Surplus

This page includes a writing template for analyzing this topic and usage notes to guide its application. In general, the template is designed to serve as a starting point for your analysis. It should be adapted to fit the specific facts of your case and your professor’s preferences.

Writing Template

Issue

I: The issue is whether the deficiency or surplus was properly processed.

Analysis

R: If the proceeds from a collateral disposition are insufficient to satisfy the debt, the secured party may recover the remaining amount from the obligor (typically, the debtor). However, if a surplus remains, the secured party must first apply it to (1) cover expenses related to repossession, storage, and sale, and (2) distribute the remaining funds to any subordinate lien holders before remitting any final surplus to the debtor.

Consumer Goods

R: In consumer goods transactions, the secured party is required to send a written notice to the debtor that explains the calculation of any resulting deficiency or surplus. Failure to provide such notice makes the secured party liable for losses incurred by the debtor as well as statutory damages of $500. Statutory requirements mandate this notice to enable the debtor to verify calculations and confirm compliance with statutory procedure.

A: Here, [apply relevant rules to facts].

Conclusion

C: Therefore, the deficiency or surplus [was/was not] properly processed.

Usage Notes

JurisJotter templates synthesize legal principles into a practical format that supports the development of well-structured, point-rich analyses in a timed exam.

The template features (1) headers identifying the overall issue, analysis, and conclusion. If the analysis begins with an umbrella rule that identifies elements, factors, or steps of the analysis, it will be followed by subheaders that signpost the analysis of each component.

The template also features (2) IRAC labels at the beginning of each paragraph. These headers and labels are included for educational purposes, offering guidance on structuring your analysis. Your usage of the headers is optional but can be helpful to readers. We advise against including the IRAC labels in submitted work.

The templates serve as a general guide for writing and should be adapted to align with (1) your specific factual circumstances and (2) your professor’s preferences, particularly if your professor provides explicit formulations of rules or analyses. For example, you may add or subtract an element or modify its language. Regardless of whether your professor provides explicit formulations, (3) this template will assist you in crafting point-rich analyses.

Please note that these templates are writing aids and not finished products. They are efficiently designed for exam essays to demonstrate conceptual understanding; thus, they are not comprehensive outlines with historical context or dicta.

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