§ 25-9-402. Secured party not obligated on contract of debtor or in tort.
69 words·~1 min read·
/nc/chapter-25/25-9-402A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§ 25-9-402. Secured party not obligated on contract of debtor or in tort.
The existence of a security interest, agricultural lien, or authority given to a debtor to dispose of or use collateral, without more, does not subject a secured party to liability in contract or tort for the debtor's acts or omissions. (1961, c. 574; 1965, c. 700, s. 1; 1975, c. 862, s. 7; 2000-169, s. 1.)