Vermont § 608 - § 9—608.

§ 608. § 9—608.

• Application of proceeds of collection or enforcement; liability for deficiency and
  right to surplus (a) 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 section 9—607 of this title 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 a
  signed 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 subdivision (1)(C) of this subsection. (3) A secured party need not apply or pay over for application noncash proceeds of collection
  and enforcement under section 9—607 of this title 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) 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. (Added 1999, No. 106 (Adj. Sess.), § 2, eff. July 1, 2001; amended 2001, No. 46, § 7; 2025, No. 17, § 9, eff. July 1, 2025.)