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Credit Contracts and Consumer Finance Act 2003

Repossession of consumer goods under consumer credit contract - Rules that apply after repossession of consumer goods

83ZJ: Distribution of surplus

You could also call this:

"What happens to leftover money after a creditor sells consumer goods"

Illustration for Credit Contracts and Consumer Finance Act 2003

If a creditor sells consumer goods, they must pay any surplus to certain people in a specific order. You will get paid if you have a registered interest in the goods and it is subordinate to the creditor's interest. The creditor must also pay others who have a legitimate interest in the goods, and then the debtor. If there are multiple people with registered interests, they get paid in order of priority, as determined by Part 7 or 8 of the Personal Property Securities Act 1999. You still get paid even if your security interest was extinguished under section 83ZH. The creditor pays people in the order of those with registered interests, then others with legitimate interests, and finally the debtor.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6501403.

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Topics:
Money and consumer rights > Consumer protectionMoney and consumer rights > Banking and loans
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83ZI: Creditor to give statement of account to debtor, guarantor, and other interested persons, or

"Creditors must give you a statement of account after selling your goods."

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83ZK: Surplus may be paid into court, or

"If you're not sure who gets leftover money, you can pay it to the court."

Part 3ARepossession of consumer goods under consumer credit contract
Rules that apply after repossession of consumer goods

83ZJDistribution of surplus

  1. If a creditor has sold consumer goods under section 83Z or 83ZF, the creditor must pay the following persons the amount of any surplus by satisfying the claims of those persons in the following order:

  2. any person who has registered a financing statement in the name of the debtor over the consumer goods that were sold where—
    1. the registration was effective immediately before the consumer goods were sold; and
      1. the security interest relating to that registration was subordinate to the security interest of the creditor who sold the consumer goods:
      2. any other person who has given the creditor notice that that person claims an interest in the consumer goods that were sold and in respect of which the creditor is satisfied that that person has a legally enforceable interest in the consumer goods:
        1. the debtor.

          1. The security interests to which subsection (1)(a) applies must be paid in the order of their priority as determined by Part 7 or 8 of the Personal Property Securities Act 1999.

          2. Subsection (1) applies despite the extinguishment of a security interest under section 83ZH.

          Compare
          Notes
          • Section 83ZJ: inserted, on , by section 51 of the Credit Contracts and Consumer Finance Amendment Act 2014 (2014 No 33).