Mississippi § 75-9-608 - Application of proceeds of collection or enforcement; liability for deficiency and right to surplus.
Full text of Mississippi Mississippi Code of 1972 Annotated § 75-9-608 — Application of proceeds of collection or enforcement; liability for deficiency and right to surplus., with citation guidance and answers to common questions.
§ 75-9-608. Application of proceeds of collection or enforcement; liability for deficiency and right to surplus.
If a security interest or agricultural lien secures payment or performance of an obligation, the following rules apply: A secured party shall apply or pay over for application the cash proceeds of collection or enforcement under Section 75-9-607 in the following order to: If requested by a secured party, a holder of a subordinate security interest or other lien shall furnish reasonable proof of the interest or lien within a reasonable time. Unless the holder complies, the secured party need not comply with the holder’s demand under paragraph (1)(C). A secured party need not apply or pay over for application noncash proceeds of collection and enforcement under Section 75-9-607 unless the failure to do so would be commercially unreasonable. A secured party that applies or pays over for application noncash proceeds shall do so in a commercially reasonable manner. A secured party shall account to and pay a debtor for any surplus, and the obligor is liable for any deficiency. The reasonable expenses of collection and enforcement and, to the extent provided for by agreement and not prohibited by law, reasonable attorney’s fees and legal expenses incurred by the secured party; The satisfaction of obligations secured by the security interest or agricultural lien under which the collection or enforcement is made; and The satisfaction of obligations secured by any subordinate security interest in or other lien on the collateral subject to the security interest or agricultural lien under which the collection or enforcement is made if the secured party receives an authenticated demand for proceeds before distribution of the proceeds is completed. If the underlying transaction is a sale of accounts, chattel paper, payment intangibles, or promissory notes, the debtor is not entitled to any surplus, and the obligor is not liable for any deficiency.
Source: official Mississippi text · Last verified 2026-08-27
Frequently Asked Questions About Mississippi § 75-9-608
What does Mississippi Code of 1972 Annotated § 75-9-608 cover?
Section 75-9-608 ("Application of proceeds of collection or enforcement; liability for deficiency and right to surplus.") is part of the Mississippi Code of 1972 Annotated, the codified statutory law of Mississippi. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Mississippi § 75-9-608?
A common citation format is "Mississippi Code of 1972 Annotated § 75-9-608" (Mississippi). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Mississippi law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Mississippi official source linked on this page or consult a licensed Mississippi attorney.
How does Mississippi § 75-9-608 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Mississippi can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Mississippi.