4-9-628. Nonliability and limitation on liability of secured party - liability of
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/co/title-4-uniform-commercial-code/article-9-secured-transactions/4-9-628·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
secondary obligor.
(a)Subject to subsection
(f)of this section, unless a secured party knows that a person is a debtor or obligor, knows the identity of the person, and knows how to communicate with the person:
(1)The secured party is not liable to the person, or to a secured party or lienholder that has filed a financing statement against the person, for failure to comply with this article; and
(2)The secured party's failure to comply with this article does not affect the liability of the person for a deficiency.
(b)Subject to subsection
(f)of this section, a secured party is not liable because of its status as secured party:
(1)To a person that is a debtor or obligor, unless the secured party knows:
(A)That the person is a debtor or obligor;
(B)The identity of the person; and
(C)How to communicate with the person; or
(2)To a secured party or lienholder that has filed a financing statement against a person, unless the secured party knows:
(A)That the person is a debtor; and
(B)The identity of the person.
(c)A secured party is not liable to any person, and a person's liability for a deficiency is not affected, because of any act or omission arising out of the secured party's reasonable belief that a transaction is not a consumer-goods transaction or a consumer transaction or that goods are not consumer goods, if the secured party's belief is based on its reasonable reliance on:
(1)A record authenticated by the debtor concerning the purpose for which collateral was to be used, acquired, or held, or indicating that collateral is not a consumer deposit account; or
(2)A record authenticated by the obligor concerning the purpose for which a secured obligation was incurred.
(1)A secured party is not liable under section 4-9-625 (c)(2) for its failure to comply with section 4-9-616.
(2)Repealed.
(e)A secured party is not liable under section 4-9-625 (c)(2) more than once with respect to any one secured obligation.
(f)Subsections
(a)and
(b)of this section do not apply to limit the liability of 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:
(1)The person is a debtor or obligor; and
(2)The secured party knows that the information in subsection (b)(1)(A), (b)(1)(B), or (b)(1)(C) of this section 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.