2007 Minnesota Statutes

336.9-628 NONLIABILITY AND LIMITATION ON LIABILITY OF SECURED PARTY;
LIABILITY OF SECONDARY OBLIGOR.
(a) Limitation of liability of secured party for noncompliance with article. 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) Limitation of liability based on status as secured party. 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) Limitation of liability if good faith belief that transaction is not a consumer goods
transaction or consumer transaction. A secured party is not liable to any person, and a persons
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) Limitation of liability for statutory damages. A secured party is not liable to any
person under section 336.9-625(c)(2) for its failure to comply with section 336.9-616.
(e) Limitation of multiple liability for statutory damages. A secured party is not liable
under section 336.9-625(c)(2) more than once with respect to any one secured obligation.
History: 2000 c 399 art 1 s 129