Kentucky Statutes 355.9-628 – Nonliability and limitation on liability of secured party — Liability of secondary obligor
Current as of: 2024 | Check for updates
|
Other versions
(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:
(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 article; and
(b) The secured party’s failure to comply with this article 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:
(a) 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
(b) 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) 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:
(a) A debtor’s representation concerning the purpose for which collateral was to be used, acquired, or held; or
(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 KRS § 355.9-625(3)(b) for its failure to comply with KRS § 355.9-616.
(5) A secured party is not liable under KRS § 355.9-625(3)(b) more than once with respect to any one (1) secured obligation.
Effective: July 1, 2001
History: Created 2000 Ky. Acts ch. 408, sec. 146, effective July 1, 2001.
(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 article; and
Terms Used In Kentucky Statutes 355.9-628
- 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.
(b) The secured party’s failure to comply with this article 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:
(a) 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
(b) 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) 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:
(a) A debtor’s representation concerning the purpose for which collateral was to be used, acquired, or held; or
(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 KRS § 355.9-625(3)(b) for its failure to comply with KRS § 355.9-616.
(5) A secured party is not liable under KRS § 355.9-625(3)(b) more than once with respect to any one (1) secured obligation.
Effective: July 1, 2001
History: Created 2000 Ky. Acts ch. 408, sec. 146, effective July 1, 2001.