Secured party not obligated on contract of debtor or in tort. The existence of a security interest, agricultural lien, or authority given to a debtor to dispose of or use collateral, without more, does not subject a secured party to liability in contract or tort for the debtor’s acts or omissions. (Oct. 26, 2000, D.C. Law 13-201, § 101, 47 DCR 7576.) Section References This section is referenced in § 28:11-105. Uniform Commercial Code Comment 1. Source. Former Section 9-317. 2. Nonliability of Secured Party. This section, like former Section 9-317, rejects theories on which a secured party might be held liable on a debtor’s contracts or in tort merely because a security interest exists or because the debtor is entitled to dispose of or use collateral. This section expands former Section 9-317 to cover agricultural liens.
District of Columbia Legal Code