Section 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 9.625(c)(2) for its failure to comply with Section 9.616.(e) A secured party is not liable under Section 9.625(c)(2) more than once with respect to any one secured obligation.Tex. Bus. and Comm. Code § 9.628
Added by Acts 1999, 76th Leg., ch. 414, Sec. 1.01, eff. 7/1/2001.