☰ Revisor of Missouri

Title XXVI TRADE AND COMMERCE

Chapter 400

Effective - 01 Jul 2001, see footnote bottom

  400.9-628.  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 under section 400.9-625(c)(2) more than once with respect to any one secured obligation.

­­--------

(L. 2001 S.B. 288)

Effective 7-01-01


---- end of effective   01 Jul 2001 ----

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