554.9605 Unknown debtor or secondary obligor.

230 words·~1 min read·/ia/chapter-554-uniform-commercial-code/554-9605

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

1. In general: no duty owed by a secured party. Except as provided in subsection 2, a secured party does not owe a duty based on its status as secured party:

a. to a person that is a debtor or obligor, unless the secured party knows:

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

(2)the identity of the person; and

(3)how to communicate with the person; or

b. to a secured party or lienholder that has filed a financing statement against a person, unless the secured party knows:

(1)that the person is a debtor; and

(2)the identity of the person.

2. Exception: secured party owes a 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:

a. the person is a debtor or obligor; and

b. the secured party knows that the information in subsection 1, paragraph “a”, subparagraph (1), (2), or

(3)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.

Referred to in §554.9601