{"data":{"id":"us-dc/d.c.-code-28-9-628","jurisdiction":"us-dc","citation":"D.C. Code § 28:9-628","heading":"Nonliability and limitation on liability of secured party; liability of secondary obligor.","body":"(a)\nSubject 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)\nThe 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)\nThe secured party’s failure to comply with this article does not affect the liability of the person for a deficiency.\n\n(b)\nA secured party is not liable because of its status as secured party:\n(1)\nTo a person that is a debtor or obligor, unless the secured party knows:\n(A)\nThat the person is a debtor or obligor;\n(B)\nThe identity of the person; and\n(C)\nHow to communicate with the person; or\n(2)\nTo a secured party or lienholder that has filed a financing statement against a person, unless the secured party knows:\n(A)\nThat the person is a debtor; and\n(B)\nThe identity of the person.\n\n(c)\nA 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)\nA debtor’s representation concerning the purpose for which collateral was to be used, acquired, or held; or\n(2)\nAn obligor’s representation concerning the purpose for which a secured obligation was incurred.\n\n(d)\nA secured party is not liable to any person under § 28:9-625(c)(2) for its failure to comply with § 28:9-616.\n\n(e)\nA secured party is not liable under § 28:9-625(c)(2) more than once with respect to any one secured obligation.\n\n(f)\nSubsections (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:\n(1)\nThe person is a debtor or obligor; and\n(2)\nThe 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.","path":["Title 28. Commercial Instruments and Transactions. [Enacted title]","Subtitle I. Uniform Commercial Code.","Article 9. Secured Transactions.","Part VI. Default.","Subpart 2. Noncompliance With Article."],"source_url":"https://code.dccouncil.gov/us/dc/council/code/sections/28:9-628","current_through":"2026-08-20 (D.C. Law 26-175)","vintage":"","retrieved_at":"2026-08-29T05:44:07Z","sha256":"5960ea4ba74b2fd95e875314f2cf1c2eb570bdd8b59919d08a7c45be1534d123","source_id":"us-dc","stale":false,"prev":"us-dc/d.c.-code-28-9-627","next":"us-dc/d.c.-code-28-9-701"},"notice":"GroundRules: Original legal text. Not legal advice."}