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 Oklahoma Statutes (Last Updated: September 18, 2014)
 Title 12A. UNIFORM COMMERCIAL CODE

  § 12A-1-9-628. Nonliability and limitation on liability of secured party; liability of secondary obligor.  

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  • 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 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)  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 paragraph (2) of subsection (c) of Section 1-9- 625 of this title for its failure to comply with Section 1-9-616 of this title.

    (e)  A secured party is not liable under paragraph (2) of subsection (c) of Section 1-9-625 of this title more than once with respect to any one secured obligation.

Added by Laws 2000, c. 371, § 135, eff. July 1, 2001.