Section 28-9-628 - 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: (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 28-9-625(c)(2) for its failure to comply with section 28-9-616.(e) A secured party is not liable under section 28-9-625(c)(2) more than once with respect to any one (1) secured obligation.[28-9-628, added 2001, ch. 208, sec. 2, p. 796.]