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Searching 2021-2022 Session

The Vermont Statutes Online

 

Title 9A : Uniform Commercial Code

Article 009 : SECURED TRANSACTIONS

(Cite as: 9A V.S.A. § 9-628)
  • § 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 article; and

    (2) the secured party's failure to comply with this article 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 subdivision 9- 625(c)(2) of this title for its failure to comply with section 9- 616 of this title.

    (e) A secured party is not liable under subdivision 9- 625(c)(2) of this title more than once with respect to any one secured obligation. (Added 1999, No. 106 (Adj. Sess.), § 2, eff. July 1, 2001.)