2006 Ohio Revised Code - 1309.402. (UCC 9-402) Secured party not obligated on contract of debtor or in tort.

§ 1309.402. (UCC 9-402) Secured party not obligated on contract of debtor or in tort.
 

The existence of a security interest, agricultural lien, or authority given to a debtor to dispose of or use collateral, without more, does not subject a secured party to liability in contract or tort for the debtor's acts or omissions. 
 

HISTORY: RC § 1309.36, 129 v S 5 (Eff 7-1-62); RC § 1309.402, 149 v S 74. Eff 7-1-2001.
 

The effective date is set by section 4 of SB 74. 

 

Official Comment

1. Source. Former section 9-317. 

2. Nonliability of Secured Party. This section, like former section 9-317, rejects theories on which a secured party might be held liable on a debtor's contracts or in tort merely because a security interest exists or because the debtor is entitled to dispose of or use collateral. This section expands former section 9-317 to cover agricultural liens.