§ 554.9628

554.9628 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 knowshow to communicate with the person: a. 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 b. 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. Subject to subsection 6, a secured party is not liable because of its status as secured party: a. 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; orb. 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.

son; orb. 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 aperson’s liability for a deficiency is not affected, because of any act or omission arising out ofthe secured party’s reasonable belief that a transaction is not a consumer-goods transactionor a consumer transaction or that goods are not consumer goods, if the secured party’sbelief is based on its reasonable reliance on: a. a debtor’s representation concerning the purpose for which collateral was to be used, acquired, or held; or b. 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 section 554.9625, subsection 3, paragraph 'b', for its failure to comply with section554.9616. 5. Limitation of multiple liability for statutory damages.

cured party is not liable to any person under section 554.9625, subsection 3, paragraph 'b', for its failure to comply with section554.9616. 5. Limitation of multiple liability for statutory damages. A secured party is not liable under section 554.9625, subsection 3, paragraph 'b', more than once with respect to any onesecured obligation. 6. When secured party owes duty to debtor notwithstanding subsection 2. A secured party owes a duty based on its status as a secured party to a person that is a debtor if, atthe time the secured party obtains control of a controllable account, controllable electronicrecord, or controllable payment intangible, the secured party has knowledge that the natureof the collateral or a system in which the collateral is recorded would prevent the securedparty from acquiring the knowledge specified in subsection 2, paragraph 'a', subparagraph(1), (2), or (3). 2000 Acts, ch 1149, §126, 187; 2022 Acts, ch 1117, §37, 38Referred to in §554.9625, 554.9626 Sat Dec 23 11:02:32 2023 Iowa Code 2024, Section 554.9628 (25, 0)