D.C. Code § 28:9-628: Nonliability and limitation on liability of secured party; liability of secondary obligor.

(a)

Subject to subsection (f), 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 § 28:9-625(c)(2) for its failure to comply with § 28:9-616.

(e)

A secured party is not liable under § 28:9-625(c)(2) more than once with respect to any one secured obligation.

(f)

Subsections (a) and (b) of this section do not apply to limit the liability of a secured party to a person if, at the time the secured party obtains control of collateral that is a controllable account, controllable electronic record, or controllable payment intangible or at the time the security interest attaches to the collateral, whichever is later:

(1)

The person is a debtor or obligor; and

(2)

The secured party knows that the information in subsection (b)(1)(A), (B), or (C) of this section relating to the person is not provided by the collateral, a record attached to or logically associated with the collateral, or the system in which the collateral is recorded.