{"data":{"id":"us-hi/haw.-rev.-stat.-490-9-628","jurisdiction":"us-hi","citation":"Haw. Rev. Stat. § 490:9-628","heading":"Nonliability and limitation on liability of secured party; liability of secondary obligor.","body":"(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:\n\n(1) The secured party shall not be 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\n(2) The secured party's failure to comply with this article shall not affect the liability of the person for a deficiency.\n\n(b) Subject to subsection (f), a secured party shall not be liable because of its status as secured party to:\n\n(1) A person that is a debtor or obligor, unless the secured party knows:\n\n(A) That the person is a debtor or obligor;\n\n(B) The identity of the person; and\n\n(C) How to communicate with the person; or\n\n(2) A secured party or lienholder that has filed a financing statement against a person, unless the secured party knows:\n\n(A) That the person is a debtor; and\n\n(B) The identity of the person.\n\n(c) A secured party shall not be liable to any person, and a person's liability for a deficiency shall not be 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\n(1) A debtor's representation concerning the purpose for which collateral was to be used, acquired, or held; or\n\n(2) An obligor's representation concerning the purpose for which a secured obligation was incurred.\n\n(d) A secured party shall not be liable to any person under section 490:9-625(c)(2) for its failure to comply with section 490:9-616.\n\n(e) A secured party shall not be liable under section 490:9-625(c)(2) more than once with respect to any one secured obligation.\n\n(f) Subsections (a) and (b) shall 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\n(1) The person is a debtor or obligor; and\n\n(2) The secured party knows that the information in subsection (b)(1) 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":["Hawaii Code","Division 2","Title 27","Chapter 490"],"source_url":"http://www.capitol.hawaii.gov/hrscurrent/Vol11_Ch0476-0490/HRS0490/HRS_0490-0009-0628.htm","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:11Z","sha256":"8b98bf5c130fdd4bb1c3a2d911acc96dda201d6ee57e8bef0760ad03cc186b61","source_id":"us-hi","stale":false,"prev":"us-hi/haw.-rev.-stat.-490-9-627","next":"us-hi/haw.-rev.-stat.-490-9-702"},"notice":"GroundRules: Original legal text. Not legal advice."}