Sec. 09.03.04.02. Application of Proceeds of Resale by Holder of Repossessed Goods

A. In all cases of private sale of repossessed goods, a full accounting shall be made to the buyer in writing. The seller shall retain a copy of this accounting for at least 24 months.

B. The accounting shall contain the following information:

(1) The unpaid balance at the time the goods were repossessed;

(2) The refund credit of unearned finance charges and insurance premiums, if any;

(3) The remaining net balance;

(4) The proceeds of the sale of the goods;

(5) The remaining deficiency balance, if any, or the amount due the buyer;

(6) All expenses incurred as a result of the sale;

(7) The purchaser's name, address, and business;

(8) The number of bids sought and received; and

(9) Any statement as to the condition of the goods at the time of repossession which would cause their value to be increased or decreased above or below the market value for goods of like kind and quality.

C. Upon compliance with Commercial Law Article, §12-631, Annotated Code of Maryland, if the Commissioner finds that any sale of repossessed goods was not a bona fide sale, the Commissioner may require the seller to show cause why a determination should not be made that he has not complied with Commercial Law Article, §12-626, Annotated Code of Maryland. If the seller contends that the sale was a bona fide sale in compliance with the statute, he shall have an opportunity to be heard pursuant to the Rules of Procedure of the Commissioner of Financial Regulation. Upon a determination after hearing that the sale was not bona fide, an order disallowing any claim of deficiency liability may be entered.

D. The Commissioner from time to time may issue reasonable regulations to determine whether the public or private sale is bona fide.