Section 490:9-628 - 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 shall not be 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 shall not affect the liability of the person for a deficiency.(b) Subject to subsection (f), a secured party shall not be liable because of its status as secured party to: (1) 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) 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 shall not be liable to any person, and a person's liability for a deficiency shall not be 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 shall not be liable to any person under section 490:9-625(c)(2) for its failure to comply with section 490:9-616.(e) A secured party shall not be liable under section 490:9-625(c)(2) more than once with respect to any one secured obligation.(f) Subsections (a) and (b) shall 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) 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 L 2024, c 178,§ 14, eff. 7/2/2024.Amended by L 2023, c 132,§ 63, eff. 6/29/2023.