(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 a 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.
Structure Delaware Code
Article 9. Secured Transactions
§ 9-602. Waiver and variance of rights and duties.
§ 9-603. Agreement on standards concerning rights and duties.
§ 9-604. Procedure if security agreement covers real property or fixtures.
§ 9-605. Unknown debtor or secondary obligor.
§ 9-606. Time of default for agricultural lien.
§ 9-607. Collection and enforcement by secured party.
§ 9-609. Secured party's right to take possession after default.
§ 9-610. Disposition of collateral after default.
§ 9-611. Notification before disposition of collateral.
§ 9-612. Timeliness of notification before disposition of collateral.
§ 9-613. Contents and form of notification before disposition of collateral: general.
§ 9-615. Application of proceeds of disposition; liability for deficiency and right to surplus.
§ 9-616. Explanation of calculation of surplus or deficiency.
§ 9-617. Rights of transferee of collateral.
§ 9-618. Rights and duties of certain secondary obligors.
§ 9-619. Transfer of record or legal title.
§ 9-621. Notification of proposal to accept collateral.
§ 9-622. Effect of acceptance of collateral.
§ 9-623. Right to redeem collateral.
§ 9-625. Remedies for secured party's failure to comply with article.
§ 9-626. Action in which deficiency or surplus is in issue.
§ 9-627. Determination of whether conduct was commercially reasonable.
§ 9-628. Nonliability and limitation on liability of secured party; liability of secondary obligor.