(a. 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 title; and
(2. the secured party’s failure to comply with this title does not affect the liability of the person for a deficiency.
(b. 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:
(2. to a secured party or lienholder that has filed a financing statement against a person, unless the secured party knows:
(c. 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. A secured party is not liable to any person under § 8.9A-625 (c) (2) for its failure to comply with § 8.9A-616.
(e. A secured party is not liable under § 8.9A-625 (c) (2) more than once with respect to any one secured obligation.
History
2000, c. 1007.
