Insecurity and impaired collateral.

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(1) If a creditor takes possession of any collateral because the creditor deems himself or herself insecure or because the creditor feels his or her collateral is impaired, and the creditor fails to prove that, at the time possession was taken, the creditor, in good faith, had reasonable cause to believe that he or she was insecure or that his or her collateral was impaired:

  1. The creditor shall be liable to the consumer for court costs and attorney fees as determined by the court; and

  2. The consumer shall not be liable for any finance charge incurred during the periodthe consumer is without use of the collateral.

Source: L. 2000: Entire article R&RE, p. 1234, § 1, effective July 1.

Editor's note: This section is similar to former § 5-5-103.5, as it existed prior to 2000.


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