California Codes, Civil Code - CIV, Division 3 — Obligations, Part 4 — Obligations Arising from Particular Transactions, Title 2 — Credit Sales, Chapter 1 — Retail Installment Sales, Article 12.1 — Repossession and Resale, Section 1812.4

The proceeds of a resale shall be applied (1) to the payment of the expenses thereof, (2) to the payment of any expenses of retaking, including reasonable attorney’s fees actually incurred, and of any expenses of keeping, storing, repairing, reconditioning or preparing the goods for sale to which the holder may be entitled, (3) to the satisfaction of the balance due under the contract. Any sum remaining after the satisfaction of such claims shall be paid to the buyer.

Notes

Requires proceeds from a resale of retaken goods to be applied first to sale expenses, then to permitted retaking expenses, reasonable attorney’s fees actually incurred, and costs of keeping, storing, repairing, reconditioning, or preparing the goods for sale, and then to the contract balance. Any remaining amount must be paid to the buyer.

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