Nonliability and limitation on liability of secured party -- liability of secondary obligor

30-9A-628 . Nonliability and limitation on liability of secured party -- liability of secondary obligor. (1) Subject to subsection (6), 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) Subject to subsection (6), 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. (6) Subsections (1) and (2) do not apply to limit the liability of a secured party to a person if, at the time the secured party obtains control of collateral that is a controllable account, controllable electronic record, or controllable payment intangible or at the time the security interest attaches to the collateral, whichever is later: (a) the person is a debtor or obligor; and (b) the secured party knows that the information in subsection (2)(a)(i), (2)(a)(ii), or (2)(a)(iii) relating to the person is not provided by the collateral, a record attached to or logically associated with the collateral, or the system in which the collateral is recorded.