30-9-628. (Effective July 1, 2001) 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 chapter; and
     (b) the secured party's failure to comply with this chapter does not affect the liability of the person for a deficiency.
     (2) A secured party is not liable because of its status as a secured party:
     (a) to 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; or
     (b) to 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.
     (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 30-9-625(3)(b) for its failure to comply with 30-9-616.
     (5) A secured party is not liable under 30-9-625(3)(b) more than once with respect to any one secured obligation.

     History: En. Sec. 125, Ch. 305, L. 1999.