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Presumption of Fair Market Value (Deficiency Judgment) (Without Notice and/or Commercial Reasonableness)
2008- Evidence
C - 80.66
After default, if a secured creditor disposes of collateral (property pledged by the debtor to secure payment of a debt) by sale, lease, license, or otherwise, in a manner that is commercially unreasonable or fails to give the debtor advance notice of the intended disposition, it is presumed that the fair market value of the collateral is equal to the unpaid debt. Accordingly, the secured creditor cannot recover a deficiency judgment against the debtor unless the creditor overcomes that presumption by proving by the greater weight of the evidence that the fair market value of the collateral was less than the unpaid debt. A creditor who meets that burden is entitled to a deficiency judgment for the lesser of the difference between 1) the unpaid debt and the fair market value of the collateral sold, and 2) the unpaid debt and the amount received upon disposition of the collateral.
 
NDCC 41-01-06, 41-01-19, 41-09-50, 41-09-107, 41-09-108
State Bank of Towner v. Hansen, 302 NW2d 760 (ND 1981)