South Carolina § 36-9-628 Nonliability and limitation on liability of secured party; liability of secondary obligor.

South Carolina Statutes

§ 36-9-628 — Nonliability and limitation on liability of secured party; liability of secondary obligor.

South Carolina·Title 36 COMMERCIAL CODE·Ch. 9 COMMERCIAL CODE—SECURED TRANSACTIONS

(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

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(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 36-9-625(c)(2) for its failure to comply with Section 36-9-616. (e) A secured party is not liable under Section 36-9-625(c)(2) more than once with respect to any one secured obligation.

South Carolina § 36-9-628 (Nonliability and limitation on liability of secured party; liability of secondary obligor.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.