| (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:
Terms Used In Utah Code 70A-9a-628- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Person: means :Utah Code 68-3-12.5
| (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 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 Subsection 70A-9a-625(3)(b) for its failure to comply with Section 70A-9a-616. |
| (5) |
A secured party is not liable under Section 70A-9a-625(3)(b) more than once with respect to any one secured obligation. |
Enacted by Chapter 252, 2000 General Session
