(a) Limitation of liability of secured party for noncompliance with chapter.  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 chapter; and

(2)  The secured party’s failure to comply with this chapter does not affect the liability of the person for a deficiency.

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Terms Used In Rhode Island General Laws 6A-9-628

  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • 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: may be construed to extend to and include co-partnerships and bodies corporate and politic. See Rhode Island General Laws 43-3-6

(b) 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:

(i)  That the person is a debtor or obligor;

(ii)  The identity of the person; and

(iii)  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:

(i)  That the person is a debtor; and

(ii)  The identity of the person.

(c) 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.

(d) Limitation of liability for statutory damages.  A secured party is not liable to any person under § 6A-9-625(c)(2) for its failure to comply with § 6A-9-616.

(e) Limitation of multiple liability for statutory damages.  A secured party is not liable under § 6A-9-625(c)(2) more than once with respect to any one secured obligation.

History of Section.
P.L. 2000, ch. 182, § 6; P.L. 2000, ch. 420, § 6.