Ky. Rev. Stat. § 355.9-628

Current through 2024 Ky. Acts ch. 225

Section 355.9-628 - [Effective Until 1/1/2025] 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:

(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; and

(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:

(a) To a person that is a debtor or obligor, unless the secured party knows:

1. That the person is a debtor or obligor;

2. The identity of the person; and

3. How to communicate with the person; or

(b) To a secured party or lienholder that has filed a financing statement against a person, unless the secured party knows:

1. That the person is a debtor; and

2. 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:

(a) A debtor's representation concerning the purpose for which collateral was to be used, acquired, or held; or

(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 KRS 355.9-625(3)(b) for its failure to comply with KRS 355.9-616.

(5) A secured party is not liable under KRS 355.9-625(3)(b) more than once with respect to any one (1) secured obligation.

KRS 355.9-628

Effective:7/1/2001
Created 2000, Ky. Acts ch. 408, sec. 146, effective7/1/2001.

This section is set out more than once due to postponed, multiple, or conflicting amendments.