South Dakota § 57A-9-628 Nonliability and limitation on liability of secured party--Liability of secondary obligor.

South Dakota Statutes

§ 57A-9-628 — Nonliability and limitation on liability of secured party--Liability of secondary obligor.

South Dakota·Title 57A UNIFORM COMMERCIAL CODE·Ch. 57A-6 SECURED TRANSACTIONS

(a)Subject to subsection (f), 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)Subject to subsection (f), 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 per

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(a) Subject to subsection (f), 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) Subject to subsection (f), 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 § 57A-9-625 (c)(2) for its failure to comply with § 57A-9-616 . (e) A secured party is not liable under § 57A-9-625 (c)(2) more than once with respect to any one secured obligation. (f) Subsections (a) and (b) do not apply to limit the liability of a secured party to a person if, at the time the secured party obtains control of collateral that is a controllable account, controllable electronic record, or controllable payment intangible or at the time the security interest attaches to the collateral, whichever is later: (1) The person is a debtor or obligor; and (2) The secured party knows that the information in subsection (b)(1)(A), (B), or (C) relating to the person is not provided by the collateral, a record attached to or logically associated with the collateral, or the system in which the collateral is recorded.

South Dakota § 57A-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.