Nonliability and Limitation on Liability of Secured Party; Liability of Secondary Obligor

  1. Law
  2. Georgia Code
  3. Commercial Code
  4. Secured Transactions
  5. Default
  6. Nonliability and Limitation on Liability of Secured Party; Liability of Secondary Obligor

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  1. 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.
  2. 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:
      1. That the person is a debtor or obligor;
      2. The identity of the person; and
      3. 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:
      1. That the person is a debtor; and
      2. The identity of the person.
  3. Limitation of liability if reasonable belief that transaction not a consumer goods transaction or consumer transaction. 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.
  4. Limitation of liability for statutory damages. A secured party is not liable to any person under paragraph (2) of subsection (c) of Code Section 11-9-625 for its failure to comply with Code Section 11-9-616.
  5. Limitation of multiple liability for statutory damages. A secured party is not liable under paragraph (2) of subsection (c) of Code Section 11-9-625 more than once with respect to any one secured obligation.

(Code 1981, §11-9-628, enacted by Ga. L. 2001, p. 362, § 1.)

RESEARCH REFERENCES

U.L.A.

- Uniform Commercial Code (U.L.A.) § 9-628.

PART 7 2001 TRANSITION

Editor's notes.

- Ga. L. 2013, p. 690, § 19/SB 185, effective July 1, 2013, renamed Part 7 as "2001 Transition".


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