Arizona § 47-9628 Nonliability and limitation on liability of secured party; liability of secondary obligor

Arizona Statutes

§ 47-9628 — Nonliability and limitation on liability of secured party; liability of secondary obligor

Arizona § 47-9628

Title 47Arizona Revised Statutes

Ch. 9SECURED TRANSACTIONS

Art. 6Default

This text of Arizona § 47-9628 (Nonliability and limitation on liability of secured party; liability of secondary obligor) is published on Counsel Stack Legal Research, covering Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ariz. Rev. Stat. Ann. § 47-9628 (2026).

Text

A. 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. 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

Free access — add to your briefcase to read the full text and ask questions with AI

A. 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. 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 section 47-9625, subsection C, paragraph 2 for its failure to comply with section 47-9616.

E. A secured party is not liable under section 47-9625, subsection C, paragraph 2 more than once with respect to any one secured obligation.