§ 34.1-9-628 — Nonliability and limitation on liability of secured party; liability of secondary obligor

(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:
(i) 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
article; and
(ii) The secured party's failure to comply with this
article 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:
(i) 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
(ii) 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:
(i) A debtor's representation concerning the purpose
for which collateral was to be used, acquired or held; or
(ii) 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 34.1-9-625(c)(ii) for its failure to comply with section