2006 New York Code - Nonliability and Limitation on Liability of Secured Party; Liability of Secondary Obligor

 
  Section 9--628. Nonliability  and  Limitation  on  Liability  of Secured
                    Party; Liability of Secondary Obligor.
    (a) Limitation of liability of secured party  for  noncompliance  with
  article.  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
             article; and
         (2) the  secured party's failure to comply with this article does
             not affect the liability of the person for a deficiency.
    (b) Limitation of liability  based  on  status  as  secured  party.  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) Limitation  of liability if reasonable belief that transaction not
  a consumer-goods transaction or consumer transaction. 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) Limitation of liability for statutory damages. A secured party  is
  not liable to any person under Section 9--625 (c) (2) for its failure to
  comply with Section 9--616.
    (e) Limitation  of multiple liability for statutory damages. A secured
  party is not liable under Section 9--625 (c) (2)  more  than  once  with
  respect to any one secured obligation.