84-9-628. Nonliability and limitation on liability of secured party.

383 words·~2 min read·/ks/chapter-84/84-9-628

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

(a)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:

(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)Limitation of liability based on status as secured party. 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)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:

(1)A debtor's representation concerning the purpose for which collateral was to be used, acquired, or held; or

(2)an obligor's representation concerning the purpose for which a secured obligation was incurred.

(d)Limitation of liability for statutory damages. A secured party is not liable to any person under K.S.A. 2025 Supp. 84-9-625 (c)(2), and amendments thereto, for its failure to comply with K.S.A. 2025 Supp. 84-9-616 , and amendments thereto.

(e)Limitation of multiple liability for statutory damages. A secured party is not liable under K.S.A. 2025 Supp. 84-9-625 (c)(2), and amendments thereto, more than once with respect to any one secured obligation.