47-9628. 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 this chapter; and


2. The secured party's failure to comply with this chapter 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 section 47-9625, subsection C,
paragraph 2 for its failure to comply with section 47-9616.


E. A secured party is not liable under section 47-9625, subsection C, paragraph 2
more than once with respect to any one secured obligation.