47-9628 - Arizona Statutes

47-9628. 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: 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.