Section 57A-9-628 - Nonliability and limitation on liability of secured party-Liability of secondary obligor(a) Subject to subsection (f), 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 chapter; and(2) The secured party's failure to comply with this chapter does not affect the liability of the person for a deficiency.(b) Subject to subsection (f), 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) 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 § 57A-9-625(c)(2) for its failure to comply with § 57A-9-616.(e) A secured party is not liable under § 57A-9-625(c)(2) more than once with respect to any one secured obligation.(f) Subsections (a) and (b) 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) 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. SL 2000, ch 231; SL 2024, ch 198, §92.Amended by S.L. 2024, ch. 198,s. 92, eff. 7/1/2024.