Section 554.9628 - [Effective 7/1/2024] Nonliability and limitation on liability of secured party - liability of secondary obligor1.Limitation of liability of secured party for noncompliance with article. Subject to subsection 6, 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:
a. 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; andb. the secured party's failure to comply with this Article does not affect the liability of the person for a deficiency.2.Limitation of liability based on status as secured party. Subject to subsection 6, a secured party is not liable because of 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; orb. 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.3.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:a. a debtor's representation concerning the purpose for which collateral was to be used, acquired, or held; orb. an obligor's representation concerning the purpose for which a secured obligation was incurred.4.Limitation of liability for statutory damages. A secured party is not liable to any person under section 554.9625, subsection 3, paragraph "b", for its failure to comply with section 554.9616.5.Limitation of multiple liability for statutory damages. A secured party is not liable under section 554.9625, subsection 3, paragraph "b", more than once with respect to any one secured obligation.6.Exception: limitation of liability under subsections 1 and 2 does not apply. Subsections 1 and 2 do not apply to limit the liability of 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; andb. the secured party knows that the information in subsection 2, 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.Amended by 2024 Iowa SF 2389,s 106, eff. 7/1/2024.Amended by 2024 Iowa SF 2389,s 105, eff. 7/1/2024.Amended by 2022 Iowa, ch 1117, s 38, eff. 7/1/2022.Amended by 2022 Iowa, ch 1117, s 37, eff. 7/1/2022.2000 Acts, ch 1149, §126, 187Referred to in §554.9625, 554.9626
This section is set out more than once due to postponed, multiple, or conflicting amendments.