11-9-628. Nonliability and limitation on liability of secured party; liability of secondary obligor.
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/ga/title-11-commercial-code/subpart-2-noncompliance-with-article/11-9-628·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Limitation of liability of secured party for noncompliance with article. 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:
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
The secured party’s failure to comply with this article does not affect the liability of the person for a deficiency.
Limitation of liability based on status as secured party. A secured party is not liable because of its status as secured party:
To a person that is a debtor or obligor, unless the secured party knows:
That the person is a debtor or obligor;
The identity of the person; and
How to communicate with the person; or
To a secured party or lienholder that has filed a financing statement against a person, unless the secured party knows:
That the person is a debtor; and
The identity of the person.
Limitation of liability if reasonable belief that transaction not a consumer goods transaction or consumer transaction. 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:
A debtor’s representation concerning the purpose for which collateral was to be used, acquired, or held; or
An obligor’s representation concerning the purpose for which a secured obligation was incurred.
Limitation of liability for statutory damages. A secured party is not liable to any person under paragraph
(2)of subsection
(c)of Code Section 11-9-625 for its failure to comply with Code Section 11-9-616.
Limitation of multiple liability for statutory damages. A secured party is not liable under paragraph
(2)of subsection
(c)of Code Section 11-9-625 more than once with respect to any one secured obligation.