104.9628 - Nonliability and limitation on liability of secured party; liability of secondary obligor. - Nevada Statutes

104.9628  Nonliability and limitation on liability of secured party; liability of secondary obligor.

      1.  Unless a secured party knows that a person is a debtor or obligor, knows his or her identity, and knows how to communicate with him or her:

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

      (b) The secured party’s failure to comply with this article does not affect the liability of the person for a deficiency.

      2.  A secured party is not liable because of its status as a secured party:

      (a) To a person that is a debtor or obligor, unless the secured party knows:

             (1) That he or she is a debtor or obligor;

             (2) His or her identity; and

             (3) How to communicate with him or her; or

      (b) To a secured party or lienholder that has filed a financing statement against a person, unless the secured party knows:

             (1) That he or she is a debtor; and

             (2) His or her identity.

      3.  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:

      (a) A debtor’s representation concerning the purpose for which collateral was to be used, acquired or held; or

      (b) An obligor’s representation concerning the purpose for which a secured obligation was incurred.

      4.  A secured party is not liable to any person under paragraph (b) of subsection 3 of NRS 104.9625 for its failure to comply with NRS 104.9616.

      5.  A secured party is not liable under paragraph (b) of subsection 3 of NRS 104.9625 more than once with respect to any one secured obligation.

      (Added to NRS by 1999, 361)