Section 6A-9-628 - Nonliability and limitation on liability of secured party; liability of secondary obligor(a) Limitation of liability of secured party for noncompliance with chapter. Subject to subsection (f) of this section, 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.(b) Limitation of liability based on status as secured party. Subject to subsection (f) of this section, 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.(f) Exception: Limitation of liability under subsections (a) and (b) of this section does not apply. Subsections (a) and (b) of this section do not apply to limit the liability of a secured party to a person if, at the time the secured party obtains control of collateral that is a controllable account, controllable electronic record, or controllable payment intangible or at the time the security interest attaches to the collateral, whichever is later:(1) The person is a debtor or obligor; and(2) The secured party knows that the information in subsection (b)(1)(i), (ii), or (iii) of this section relating to the person is not provided by the collateral, a record attached to or logically associated with the collateral, or the system in which the collateral is recorded.R.I. Gen. Laws § 6A-9-628
Amended by 2024 Pub. Laws, ch. 66,§ 9, eff. 6/10/2024.Amended by 2024 Pub. Laws, ch. 65,§ 9, eff. 6/10/2024. P.L. 2000 , ch. 182, § 6; P.L. 2000 , ch. 420, § 6.