§ 9-628. 9-628
365 words·~2 min read·
/us/ucc/a9/s9-628A 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 Section 9-625(c)
(2)for its failure to comply with Section 9-616 .
(e)[Limitation of multiple liability for statutory damages.] A secured party is not liable under Section 9-625(c)
(2)more than once with respect to any one secured obligation.