Current through Pa Acts 2024-53, 2024-56 through 2024-92
Section 9605 - Unknown debtor or secondary obligor(a) In general: no duty owed by secured party.--Except as provided in subsection (b), a secured party does not owe a duty based on its status as secured party to any of the following: (1) A person that is a debtor or obligor unless the secured party knows: (i) that the person is a debtor or obligor;(ii) the identity of the person; and(iii) how to communicate with the person.(2) A secured party or lienholder that has filed a financing statement against a person unless the secured party knows: (i) that the person is a debtor; and(ii) the identity of the person.(b) Exception: secured party owes duty to debtor or obligor.--A secured party owes a duty based on its status as 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: (1) the person is a debtor or obligor; and(2) the secured party knows that the information in subsection (a)(1) 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 P.L. (number not assigned at time of publication) 2024 No. 41,§ 34, eff. 8/30/2024.2001, June 8, P.L. 123, No. 18, § 16, effective 7/1/2001.