Section 440.9628 - Nonliability and limitation on liability of secured party; liability of secondary obligor(1) 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, both of the following apply:(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.(b) The secured party's failure to comply with this article does not affect the liability of the person for a deficiency.(2) A secured party is not liable because of its status as secured party to either of the following:(a) To a person that is a debtor or obligor, unless the secured party knows all of the following: (i) That the person is a debtor or obligor.(ii) The identity of the person.(iii) How to communicate with the person.(b) To a secured party or lienholder that has filed a financing statement against a person, unless the secured party knows both of the following: (i) That the person is a debtor.(ii) The identity of the person.(3) 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 or more of the following:(a) A debtor's representation concerning the purpose for which collateral was to be used, acquired, or held.(b) An obligor's representation concerning the purpose for which a secured obligation was incurred.(4) A secured party is not liable to any person under section 9625(3)(b) for its failure to comply with section 9616.(5) A secured party is not liable under section 9625(3)(b) more than once with respect to any 1 secured obligation.Add. 2000, Act 348, Eff. 7/1/2001.