§ 9-628 — Nonliability and Limitation on Liability of Secured Party; Liability of Secondary Obligor

New York § 9-628

• Jurisdiction: New York
• Law UCC: Uniform Commercial Code
• Part 6: Default
• Subpart 2: Noncompliance With Article
• Art. 9: Secured Transactions

Text

Section 9--628. Nonliability and Limitation on Liability of Secured\n Party; Liability of Secondary Obligor.\n (a) Limitation of liability of secured party for noncompliance with\narticle. Unless a secured party knows that a person is a debtor or\nobligor, knows the identity of the person, and knows how to communicate\nwith the person:\n (1) the secured party is not liable to the person, or to a\n secured party or lienholder that has filed a financing\n statement against the person, for failure to comply with this\n article; and\n (2) the secured party's failure to comply with this article does\n not affect the liability of the person for a deficiency.\n (b) Limitation of liability based on status as secured party. A\nsecured party is not liable because of its status as secured party:\n (1) to a person that is a debtor or obligor, unless the secured\n party knows:\n (A) that the person is a debtor or obligor;\n (B) the identity of the person; and\n (C) how to communicate with the person; or\n (2) to a secured party or lienholder that has filed a financing\n statement against a person, unless the secured party knows:\n (A) that the person is a debtor; and\n (B) the identity of the person.\n (c) Limitation of liability if reasonable belief that transaction not\na consumer-goods transaction or consumer transaction. A secured party is\nnot liable to any person, and a person's liability for a deficiency is\nnot affected, because of any act or omission arising out of the secured\nparty's reasonable belief that a transaction is not a consumer-goods\ntransaction or a consumer transaction or that goods are not consumer\ngoods, if the secured party's belief is based on its reasonable reliance\non:\n (1) a debtor's representation concerning the purpose for which\n collateral was to be used, acquired, or held; or\n (2) an obligor's representation concerning the purpose for which\n a secured obligation was incurred.\n (d) Limitation of liability for statutory damages. A secured party is\nnot liable to any person under Section 9--625 (c) (2) for its failure to\ncomply with Section 9--616.\n (e) Limitation of multiple liability for statutory damages. A secured\nparty is not liable under Section 9--625 (c) (2) more than once with\nrespect to any one secured obligation.\n