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Code · California · Commercial Code

§ 9605

226 words·~1 min read·/ca/commercial-code/9605

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)Except as provided in subdivision (b), a secured party does not owe a duty based on its status as secured party to either of the following persons:
(1)To a person that is a debtor or obligor, unless the secured party knows all of the following:
(A)That the person is a debtor or obligor.
(B)The identity of the person.
(C)How to communicate with the person.
(2)To a secured party or lienholder that has filed a financing statement against a person, unless the secured party knows both of the following:
(A)That the person is a debtor.
(B)The identity of the person.
(b)A secured party owes a duty based on its status as a secured party to a person if, at the time the secured party obtains control of collateral that is a controllable account, controllable electronic record, or controllable payment intangible or at the time the security interest attaches to the collateral, whichever is later, both of the following conditions are satisfied:
(1)The person is a debtor or obligor.
(2)The secured party knows that the information in subparagraph (A), (B), or
(C)of paragraph
(1)of subdivision
(a)relating to the person is not provided by the collateral, a record attached to or logically associated with the collateral, or the system in which the collateral is recorded.
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