Sec. 9.628. 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 9.625(c)(2) for its failure to comply with Section 9.616.
(e) A secured party is not liable under Section 9.625(c)(2) more than once with respect to any one secured obligation.
Added by Acts 1999, 76th Leg., ch. 414, Sec. 1.01, eff. July 1, 2001.
Structure Texas Statutes
Title 1 - Uniform Commercial Code
Chapter 9 - Secured Transactions
Section 9.602. Waiver and Variance of Rights and Duties
Section 9.603. Agreement on Standards Concerning Rights and Duties
Section 9.604. Procedure if Security Agreement Covers Real Property or Fixtures
Section 9.605. Unknown Debtor or Secondary Obligor
Section 9.606. Time of Default for Agricultural Lien
Section 9.607. Collection and Enforcement by Secured Party
Section 9.609. Secured Party's Right to Take Possession After Default
Section 9.610. Disposition of Collateral After Default
Section 9.611. Notification Before Disposition of Collateral
Section 9.612. Timeliness of Notification Before Disposition of Collateral
Section 9.613. Contents and Form of Notification Before Disposition of Collateral: General
Section 9.615. Application of Proceeds of Disposition; Liability for Deficiency and Right to Surplus
Section 9.616. Explanation of Calculation of Surplus or Deficiency
Section 9.617. Rights of Transferee of Collateral
Section 9.618. Rights and Duties of Certain Secondary Obligors
Section 9.619. Transfer of Record or Legal Title
Section 9.621. Notification of Proposal to Accept Collateral
Section 9.622. Effect of Acceptance of Collateral
Section 9.623. Right to Redeem Collateral
Section 9.625. Remedies for Secured Party's Failure to Comply With Chapter
Section 9.626. Action in Which Deficiency or Surplus Is in Issue
Section 9.627. Determination of Whether Conduct Was Commercially Reasonable