Secured party not obligated on contract of debtor or in tort

1. Law
2. District of Columbia Code
3. Commercial Instruments and Transactions. [Enacted title]
4. Uniform Commercial Code
5. Secured Transactions
6. Rights of Third Parties
7. Secured party not obligated on contract of debtor or in tort

The existence of a security interest, agricultural lien, or authority given to a debtor to dispose of or use collateral, without more, does not subject a secured party to liability in contract or tort for the debtor’s acts or omissions.

(Oct. 26, 2000, D.C. Law 13-201, § 101, 47 DCR 7576.)

Section References

This section is referenced in § 28:11-105.

Uniform Commercial Code Comment

1. Source. Former Section 9-317.

2. Nonliability of Secured Party. This section, like former Section 9-317, rejects theories on which a secured party might be held liable on a debtor’s contracts or in tort merely because a security interest exists or because the debtor is entitled to dispose of or use collateral. This section expands former Section 9-317 to cover agricultural liens.

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