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.
(Oct. 26, 2000, D.C. Law 13-201, § 101, 47 DCR 7576.)
This section is referenced in § 28:11-105.
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.
Structure District of Columbia Code
Title 28 - Commercial Instruments and Transactions. [Enacted title]
Subtitle I - Uniform Commercial Code
Article 9 - Secured Transactions
Part IV - Rights of Third Parties
§ 28:9–401. Alienability of debtor’s rights
§ 28:9–402. Secured party not obligated on contract of debtor or in tort
§ 28:9–403. Agreement not to assert defenses against assignee
§ 28:9–404. Rights acquired by assignee; claims and defenses against assignee
§ 28:9–405. Modification of assigned contract
§ 28:9–409. Restrictions on assignment of letter-of-credit rights ineffective