Printable Format16a-5-111. (UCCC) Cure of default. (1) After a consumer has been in default for 10 days for failure to make a required payment in a consumer credit transaction payable in installments, a creditor may give the consumer the notice described in this section. A creditor gives notice to the consumer under this section when the creditor delivers the notice to the consumer or delivers or mails the notice to the address of the consumer's residence.
(2) The notice shall be in writing and shall conspicuously state the following: The name, address and telephone number of the creditor to which payment is to be made, a brief description of the credit transaction, the consumer's right to cure the default, the amount of payment and date by which payment must be made to cure the default, and the consumer's possible liability for the reasonable costs of collection, including, but not limited to, court costs, either attorney fees or collection agency fees and any other information required by the administrator as set forth by rules and regulations or by administrative interpretation.
(3) With respect to a consumer credit transaction payable in installments, after a default consisting only of the consumer's failure to make a required payment, a creditor may neither accelerate maturity of the unpaid balance of the obligation nor take possession of collateral because of that default until 20 days after a notice of the consumer's right to cure is given. Until 20 days after the notice is given, the consumer may cure all defaults consisting of a failure to make the required payment by tendering the amount of all unpaid sums due at the time of the tender, without acceleration, plus any unpaid late fees. Cure shall restore the consumer to the consumer's rights under the agreement as though the defaults had not occurred.
(4) With respect to defaults on the same obligation after a creditor has once given a notice of consumer's right to cure, this section gives the consumer no right to cure and imposes no limitation on the creditor's right to proceed against the consumer or the collateral.
(5) Unless the consumer voluntarily surrenders the collateral to the creditor, the creditor may take possession of the collateral without judicial process only if possession can be taken without entry into a dwelling and without the use of force or other breach of the peace.
(6) Nothing in this section shall prohibit a consumer from voluntarily surrendering the collateral of the consumer credit transaction and shall not prohibit the creditor from thereafter enforcing the creditor's security interest in the collateral at any time after surrender.
History: L. 1973, ch. 85, § 87; L. 1974, ch. 91, § 3; L. 2005, ch. 144, § 17; L. 2024, ch. 6, § 100; January 1, 2025.
KANSAS COMMENT, 2000
1. As noted in the Kansas comment to the preceding section, the creditor must wait 20 days after sending the notice provided for in K.S.A. 16a-5-110; no acceleration of the unpaid balance or repossession of the collateral may take place until the 20-day grace period expires. If, before that time, the consumer pays the missing installment, plus any unpaid delinquency or other charges, the default has been "cured" and the consumer's prior status is restored.
2. This section imposes no limitation on the creditor's right to proceed against a consumer or goods that are collateral with respect to successive defaults on the same obligation. If the consumer misses another installment after once curing a default, subsection (3) makes it clear that the creditor can accelerate and repossess as permitted by the UCC. In addition, as noted in the Kansas comment to K.S.A. 16a-5-110, the right to cure applies only to defaults consisting of missed installment payments; there is no right to cure a default arising from an act constituting a significant impairment of the relationship.
Law Review and Bar Journal References:
Deficiency judgments, 22 K.L.R. 297, 309 (1974).
"The New UCC Article 9 Amendments," Barkley Clark, 44 J.B.A.K. 131, 179 (1975).
"Summary Repossession, Replevin, and Foreclosure of Security Interests," Thomas V. Murray, 46 J.B.A.K. 93, 95 (1977).
"Commercial Transactions Under the New Bankruptcy Act," Paul B. Rasor, 48 J.B.A.K. 199, 215 (1979).
"Interest on Legal Fees," Calvin J. Karlin, 58 J.K.B.A. No. 5, 23, 24 (1989).
"Creditor Beware: From Default Through Deficiency Judgment," Wanda M. Temm, 60 J.K.B.A. No. 8, 17, 18 (1991).
CASE ANNOTATIONS
1. Reaffirmation of debt after petition filed but prior to discharge in bankruptcy revived debt; consideration. Super Chief Credit Union v. McCoy, 3 Kan. App. 2d 25, 28, 595 P.2d 346 (1978).
2. Notice must strictly comply with statute; damages may lie and attorney fees awarded (K.S.A. 16a-5-201) where notice insufficient. Farmers State Bank v. Haflich, 10 Kan. App. 2d 333, 337, 699 P.2d 553 (1985).
3. Waiver of notice of sale after default ineffective when default cured; debtor restored to rights under agreement. Garden Nat'l Bank v. Cada, 11 Kan. App. 2d 562, 567, 729 P.2d 1252 (1986).
4. Debtor not entitled to second notice to cure for later default. Topeka Datsun Motor Co. v. Stratton, 12 Kan. App. 2d 95, 108, 736 P.2d 82 (1987).
5. Creditor not required to give notice of right to cure default where loan payable in single installment (K.S.A. 16a-5-110). First Nat'l Bank of Shawnee Mission v. Hundley, 12 Kan. App. 2d 487, 489, 748 P.2d 903 (1988).