Section 45.29.628. 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 who 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 a person, and a person's liability for a deficiency is not affected, because of an 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 a person under AS 45.29.625(c)(2) for its failure to comply with AS 45.29.616.
   (e) A secured party is not liable under AS 45.29.625(c)(2) more than once with respect to any one secured obligation.

Authorities

45.29.625;45.29.626

Notes

References

AS 45.29.625 Remedies for secured party's failure to comply with chapter.
AS 45.29.626 Action in which deficiency or surplus is in issue.

History

(Sec. 1 ch 113 SLA 2000)