{"data":{"id":"us-al/ala.-code-7-9a-628","jurisdiction":"us-al","citation":"Ala. Code § 7-9A-628","heading":"Nonliability and Limitation on Liability of Secured Party; Liability of Secondary Obligor.","body":"(a) Limitation of liability of secured party for noncompliance with article. 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:\n(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\n(2) the secured party’s failure to comply with this article does not affect the liability of the person for a deficiency.\n(b) Limitation of liability based on status as secured party. Subject to subsection (f), a secured party is not liable because of its status as secured party:\n(1) to a person that is a debtor or obligor, unless the secured party knows:\n(A) that the person is a debtor or obligor;\n(B) the identity of the person; and\n(C) how to communicate with the person; or\n(2) to a secured party or lienholder that has filed a financing statement against a person, unless the secured party knows:\n(A) that the person is a debtor; and\n(B) the identity of the person.\n(c) 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:\n(1) a debtor’s representation concerning the purpose for which collateral was to be used, acquired, or held; or\n(2) an obligor’s representation concerning the purpose for which a secured obligation was incurred.\n(d) Limitation of liability for statutory damages. A secured party is not liable to any person under Section 7-9A-625(c)(2) for its failure to comply with Section 7-9A-616.\n(e) Limitation of multiple liability for statutory damages. A secured party is not liable under Section 7-9A-625(c)(2) more than once with respect to any one secured obligation.\n(f) Exception: Limitation of liability under subsections (a) and (b) does not apply. Subsections (a) and (b) 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:\n(1) the person is a debtor or obligor; and\n(2) the secured party knows that the information in subsection (b)(1)(A), (B), or (C) 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.","path":["Title 7 Commercial Code.","Article 9A Secured Transactions.","Part 6 Default.","Division 2 Noncompliance with Article."],"source_url":"https://alison.legislature.state.al.us/code-of-alabama?section=7-9A-628","current_through":"Act 2026-611","vintage":"","retrieved_at":"2026-09-03T14:01:52Z","sha256":"bd5147d7bbe6d21dc3c2aa6d4d171da634df6fe3dfcfd952f0183a9d6be15392","source_id":"us-al","stale":false,"prev":"us-al/ala.-code-7-9a-627","next":"us-al/ala.-code-7-9a-701"},"notice":"GroundRules: Original legal text. Not legal advice."}