Nevada § 482.5163 - Sale of repossessed vehicle in commercially reasonable manner; application of proceeds; injunctive relief; damages

§ 482.5163. Sale of repossessed vehicle in commercially reasonable manner; application of proceeds; injunctive relief; damages

1. Every repossessed vehicle shall be sold in a commercially reasonable manner. The fact that a better price could have been obtained by a sale at a different time

or in a different method from that selected by the secured party is not of itself

sufficient to establish that the sale was not made in a commercially reasonable manner.

If the secured party either sells the vehicle in the usual manner in any recognized

market for such a vehicle or if the secured party sells at the price current in such

market at the time of his or her sale or has otherwise sold in conformity with reasonable

commercial practices among dealers in the type of vehicle sold the secured party has

sold in a commercially reasonable manner. A disposition which has been approved in any judicial proceeding shall conclusively

be deemed to be commercially reasonable, but this sentence does not indicate that

any such approval must be obtained in any case nor does it indicate that any disposition

not so approved is not commercially reasonable. 2. The proceeds of disposition shall be applied in the order following to: (a) The reasonable expenses of retaking, holding, preparing for sale and selling,

and, to the extent provided for in the agreement, the reasonable attorneys' fees and

legal expenses incurred by the secured party. (b) The satisfaction of indebtedness secured by the security interest under which

the disposition is made. (c) The satisfaction of indebtedness secured by any subordinate security interest

in the collateral if written notification of demand therefor is received before distribution

of the proceeds is completed. If requested by the secured party, the holder of a subordinate security interest must

seasonably furnish reasonable proof of his or her interest, and unless he or she does

so, the secured party need not comply with the demand. (d) The payment of any surplus to the debtor. 3. If it is established that the secured party is not proceeding in accordance with

the provisions of this section and NRS 482.516 disposition may be ordered or restrained on appropriate terms and conditions. If the disposition has occurred, the debtor or any person entitled to notification

or whose security interest has been made known to the secured party prior to the disposition

has a right to recover from the secured party any loss caused by failure to comply

with the provisions of this section. If the disposition was not commercially reasonable, as specified in subsection 1,

the debtor has a right to recover double the debtor’s actual damages.