§ 9-605. Unknown debtor or secondary obligor.

222 words·~1 min read·/de/title-6/chapter-9/9-605

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

(a)In general: no duty owed by secured party. —

Except as provided in subsection (b), a secured party does not owe a duty based on 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.

(b)Exception: Secured party owes duty to debtor or obligor. —

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:

(1)the person is a debtor or obligor; and

(2)the secured party knows that the information in subsection (a)(1)(A), (B), or

(C)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.