§ 11-9-628. Nonliability and Limitation on Liability of Secured Party; Liability of Secondary Obligor

1. Limitation of liability of secured party for noncompliance with article.    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.
2. 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:
      1. That the person is a debtor or obligor;
      2. The identity of the person; and
      3. 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:
      1. That the person is a debtor; and
      2. The identity of the person.
3. 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.
4. Limitation of liability for statutory damages.    A secured party is not liable to any person under paragraph (2) of subsection (c) of Code Section 11-9-625 for its failure to comply with Code Section 11-9-616.
5. Limitation of multiple liability for statutory damages.    A secured party is not liable under paragraph (2) of subsection (c) of Code Section 11-9-625 more than once with respect to any one secured obligation.

History. Code 1981, § 11-9-628 , enacted by Ga. L. 2001, p. 362, § 1.