400.9-628. Nonliability and limitation on liability of secured party--liability of secondary obligor. - Missouri Statutes

Nonliability and limitation on liability of secured party--liabilityof secondary obligor.

400.9-628. (a) Unless a secured party knows that a person is adebtor or obligor, knows the identity of the person, and knows how tocommunicate with the person:

(1) The secured party is not liable to the person, or to a securedparty or lienholder that has filed a financing statement against theperson, for failure to comply with this article; and

(2) The secured party's failure to comply with this article does notaffect the liability of the person for a deficiency.

(b) A secured party is not liable because of its status as securedparty:

(1) To a person that is a debtor or obligor, unless the secured partyknows:

(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 financingstatement 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'sliability for a deficiency is not affected, because of any act or omissionarising out of the secured party's reasonable belief that a transaction isnot a consumer-goods transaction or a consumer transaction or that goodsare not consumer goods, if the secured party's belief is based on itsreasonable reliance on:

(1) A debtor's representation concerning the purpose for whichcollateral was to be used, acquired, or held; or

(2) An obligor's representation concerning the purpose for which asecured obligation was incurred.

(d) A secured party is not liable under section 400.9-625(c)(2) morethan once with respect to any one secured obligation.

(L. 2001 S.B. 288)

Effective 7-01-01