New Jersey § 12a:9-608
Full text of New Jersey New Jersey Statutes § 12a:9-608, with citation guidance and answers to common questions.
§ 12a:9-608.
(a) Application of proceeds, surplus, and deficiency if obligation secured. If a security interest or agricultural lien secures payment or performance of an
obligation, the following rules apply: (1) A secured party shall apply or pay over for application the cash proceeds of collection
or enforcement under 12A:9-607 in the following order to: (A) 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; (B) the satisfaction of obligations secured by the security interest or agricultural
lien under which the collection or enforcement is made; and (C) 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. (2) 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) . (3) A secured party need not apply or pay over for application noncash proceeds of
collection and enforcement under section12A: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. (4) A secured party shall account to and pay a debtor for any surplus, and the obligor
is liable for any deficiency. (b) No surplus or deficiency in sales of certain rights to payment. 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.
Frequently Asked Questions About New Jersey § 12a:9-608
What does New Jersey Statutes § 12a:9-608 cover?
Section 12a:9-608 is part of the New Jersey Statutes, the codified statutory law of New Jersey. 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 New Jersey § 12a:9-608?
A common citation format is "New Jersey Statutes § 12a:9-608" (New Jersey). 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 New Jersey law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the New Jersey official source linked on this page or consult a licensed New Jersey attorney.
How does New Jersey § 12a:9-608 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in New Jersey 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 New Jersey.