Utah Code 70A-9a-628. Nonliability and limitation on liability of secured party — Liability of secondary obligor
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(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 :(24)(a) an individual;(24)(b) an association;(24)(c) an institution;(24)(d) a corporation;(24)(e) a company;(24)(f) a trust;(24)(g) a limited liability company;(24)(h) a partnership;(24)(i) a political subdivision;(24)(j) a government office, department, division, bureau, or other body of government; and(24)(k) any other organization or entity. See Utah Code 68-3-12.5(1)(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(1)(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:
(2)(a) to a person that is a debtor or obligor, unless the secured party knows:
(2)(a)(i) that the person is a debtor or obligor;
(2)(a)(ii) the identity of the person; and
(2)(a)(iii) how to communicate with the person; or
(2)(b) to a secured party or lienholder that has filed a financing statement against a person, unless the secured party knows:
(2)(b)(i) that the person is a debtor; and
(2)(b)(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:
(3)(a) a debtor’s representation concerning the purpose for which collateral was to be used, acquired, or held; or
(3)(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.