30-9A-628. Nonliability and limitation on liability of secured party -- liability of secondary obligor. (1) 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:
(a) 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
(b) the secured party's failure to comply with this chapter does not affect the liability of the person for a deficiency.
(2) A secured party is not liable because of its status as a secured party:
(a) to a person that is a debtor or obligor, unless the secured party knows:
(i) that the person is a debtor or obligor;
(ii) the identity of the person; and
(iii) how to communicate with the person; or
(b) to a secured party or lienholder that has filed a financing statement against a person, unless the secured party knows:
(i) that the person is a debtor; and
(ii) the identity of the person.
(3) 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:
(a) a debtor's representation concerning the purpose for which collateral was to be used, acquired, or held; or
(b) an obligor's representation concerning the purpose for which a secured obligation was incurred.
(4) A secured party is not liable to any person under 30-9A-625(3)(b) for its failure to comply with 30-9A-616.
(5) A secured party is not liable under 30-9A-625(3)(b) more than once with respect to any one secured obligation.
History: En. Sec. 125, Ch. 305, L. 1999; Sec. 30-9-628, MCA 1999; redes. 30-9A-628 by Code Commissioner, 2001.
Structure Montana Code Annotated
Chapter 9A. Uniform Commercial Code Secured Transactions
30-9A-602. Waiver and variance of rights and duties
30-9A-603. Agreement on standards concerning rights and duties
30-9A-604. Procedure if security agreement covers real property or fixtures
30-9A-605. Unknown debtor or secondary obligor
30-9A-606. Time of default for agricultural lien
30-9A-607. Collection and enforcement by secured party
30-9A-609. Secured party's right to take possession after default
30-9A-610. Disposition of collateral after default
30-9A-611. Notification before disposition of collateral
30-9A-612. Timeliness of notification before disposition of collateral
30-9A-613. Contents and form of notification before disposition of collateral -- general
30-9A-615. Application of proceeds of disposition -- liability for deficiency and right to surplus
30-9A-616. Explanation of calculation of surplus or deficiency
30-9A-617. Rights of transferee of collateral
30-9A-618. Rights and duties of certain secondary obligors
30-9A-619. Transfer of record or legal title
30-9A-621. Notification of proposal to accept collateral
30-9A-622. Effect of acceptance of collateral
30-9A-623. Right to redeem collateral
30-9A-625. Remedies for secured party's failure to comply with chapter
30-9A-626. Action in which deficiency or surplus is in issue
30-9A-627. Determination of whether conduct was commercially reasonable