Section 62A.9A-628 - Nonliability and limitation on liability of secured party; liability of secondary obligor(a)Limitation of liability of secured party for noncompliance with article. Subject to subsection (f) of this section, 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. Subject to subsection (f) of this section, 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 RCW 62A.9A-625(c)(2) for its failure to comply with RCW 62A.9A-616.(e)Limitation of multiple liability for statutory damages. A secured party is not liable under RCW 62A.9A-625(c)(2) more than once with respect to any one secured obligation.(f)Exception: Limitation of liability under subsections (a) and (b) of this section does not apply. Subsections (a) and (b) of this section 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: (1) The person is a debtor or obligor; and(2) The secured party knows that the information in subsection (b)(1)(A), (B), or (C) of this section 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 2023 c 266,§ 950, eff. 1/1/2024. 2011 c 74 § 727; 2001 c 32 § 45; 2000 c 250 § 9A-628.Construction-Effective date- 2023 c 266 : See notes following RCW 62A.12-101.
Application-Effective date- 2011 c 74 : See notes following RCW 62A.9A-102.
Effective date-2001 c 32: See note following RCW 62A.9A-102.