2006 New Mexico Statutes - 55-9-628 — Nonliability and limitation on liability of secured party; liability of secondary obligor.

55-9-628. 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 Chapter 55, Article 9 NMSA 1978; and   

(2)     the secured party's failure to comply with Chapter 55, Article 9 NMSA 1978 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 Paragraph (2) of Subsection (c) of Section 55-9-625 NMSA 1978 for its failure to comply with Section 55-9-616 NMSA 1978.   

(e)     A secured party is not liable under Paragraph (2) of Subsection (c) of Section 55-9-625 NMSA 1978 more than once with respect to any one secured obligation.