Arizona Laws 47-9628. Nonliability and limitation on liability of secured party; liability of secondary obligor
A. 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 Arizona Laws 47-9628
- Collateral: means the property subject to a security interest or agricultural lien. See Arizona Laws 47-9102
- Communicate: means :
(a) To send a written or other tangible record;
(b) To transmit a record by any means agreed on by the persons sending and receiving the record; or
(c) In the case of transmission of a record to or by a filing office, to transmit a record by any means prescribed by filing office rule. See Arizona Laws 47-9102
- Consumer goods: means goods that are used or bought for use primarily for personal, family or household purposes. See Arizona Laws 47-9102
- Consumer transaction: means a transaction in which an individual incurs an obligation primarily for personal, family or household purposes, a security interest secures the obligation and the collateral is held or acquired primarily for personal, family or household purposes. See Arizona Laws 47-9102
- Debtor: means :
(a) A person having an interest, other than a security interest or other lien, in the collateral, whether or not the person is an obligor;
(b) A seller of accounts, chattel paper, payment intangibles or promissory notes; or
(c) A consignee. See Arizona Laws 47-9102
- Financing statement: means a record or records composed of an initial financing statement and any filed record relating to the initial financing statement. See Arizona Laws 47-9102
- Goods: means all things that are movable when a security interest attaches. See Arizona Laws 47-9102
- 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.
- Obligor: means a person that, with respect to an obligation secured by a security interest in or an agricultural lien on the collateral, owes payment or other performance of the obligation, has provided property other than the collateral to secure payment or other performance of the obligation or is otherwise accountable in whole or in part for payment or other performance of the obligation. See Arizona Laws 47-9102
- Person: includes a corporation, company, partnership, firm, association or society, as well as a natural person. See Arizona Laws 1-215
- Secured party: means :
(a) A person in whose favor a security interest is created or provided for under a security agreement, whether or not any obligation to be secured is outstanding;
(b) A person that holds an agricultural lien;
(c) A consignor;
(d) A person to which accounts, chattel paper, payment intangibles or promissory notes have been sold;
(e) A trustee, indenture trustee, agent, collateral agent or other representative in whose favor a security interest or agricultural lien is created or provided for; or
(f) A person that holds a security interest arising under section 47-2401, 47-2505, 47-2711, 47-2A508, 47-4210 or 47-5118. See Arizona Laws 47-9102
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 chapter; and
2. The secured party’s failure to comply with this chapter does not affect the liability of the person for a deficiency.
B. 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. 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.
D. A secured party is not liable to any person under section 47-9625, subsection C, paragraph 2 for its failure to comply with section 47-9616.
E. A secured party is not liable under section 47-9625, subsection C, paragraph 2 more than once with respect to any one secured obligation.