{"data":{"id":"us-ar/ark.-code-ann.-4-9-628","jurisdiction":"us-ar","citation":"Ark. Code Ann. § 4-9-628","heading":"Nonliability and limitation on liability of secured party — Liability of secondary obligor.","body":"(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:\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 chapter; and\n(2) the secured party's failure to comply with this chapter does not affect the liability of the person for a deficiency.\n(b) 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) 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) A secured party is not liable to any person under § 4-9-625(c)(2) for its failure to comply with § 4-9-616.\n(e) A secured party is not liable under § 4-9-625(c)(2) more than once with respect to any one (1) secured obligation.","path":["Title 4 Business and Commercial Law","Subtitle 1. Uniform Commercial Code","Chapter 9 Secured Transactions","Part 6 — Default","Subpart 2 Noncompliance with Chapter"],"source_url":"https://archive.org/download/gov.ar.code/release78.2020.11.06/gov.ar.code.title.04.odt","current_through":"2020-11-06","vintage":"Arkansas Code Release 78 (2020-11), retrieved 2026-09-17","retrieved_at":"2026-09-17T21:07:03Z","sha256":"41d278a1b8e44ca2ff4e046741076d592b6de003abaa89e2c602e855384643fb","source_id":"us-ar","stale":false,"prev":"us-ar/ark.-code-ann.-4-9-627","next":"us-ar/ark.-code-ann.-4-9-701"},"notice":"GroundRules: Original legal text. Not legal advice."}