Section 9-628 - Nonliability and limitation on liability of secured party; liability of secondary obligor. - Maryland Statutes

§ 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: 

(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 title; and 

(2) The secured party's failure to comply with this title 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 § 9-625 (c) (2) for its failure to comply with § 9-616. 

(e)  A secured party is not liable under § 9-625 (c) (2) more than once with respect to any one secured obligation. 
 

[1999, ch. 282, § 2.]