{"data":{"id":"us-ia/iowa-code-554.9628","jurisdiction":"us-ia","citation":"Iowa Code § 554.9628","heading":"Nonliability and limitation on liability of secured party — liability of secondary obligor.","body":"1. Subject to subsection 6, 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:\na. 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\nb. the secured party’s failure to comply with this Article does not affect the liability of the person for a deficiency.\n2. Subject to subsection 6, a secured party is not liable because of its status as secured party:\na. to a person that is a debtor or obligor, unless the secured party knows:\n(1) that the person is a debtor or obligor;\n(2) the identity of the person; and\n(3) how to communicate with the person; or\nb. to a secured party or lienholder that has filed a financing statement against a person, unless the secured party knows:\n(1) that the person is a debtor; and\n(2) the identity of the person.\n3. 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:\na. a debtor’s representation concerning the purpose for which collateral was to be used, acquired, or held; or\nb. an obligor’s representation concerning the purpose for which a secured obligation was incurred.\n4. A secured party is not liable to any person under section 554.9625, subsection 3, paragraph “b”, for its failure to comply with section 554.9616.\n5. A secured party is not liable under section 554.9625, subsection 3, paragraph “b”, more than once with respect to any one secured obligation.\n6. Subsections 1 and 2 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:\na. the person is a debtor or obligor; and\nb. the secured party knows that the information in subsection 2, paragraph “a”, subparagraph (1), (2), or (3), 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 XIII - COMMERCE (Ch. 505 - 554I)","Chapter 554 - UNIFORM COMMERCIAL CODE","Article 9 - SECURED TRANSACTIONS","Part 6 - DEFAULT","Subpart B - NONCOMPLIANCE WITH ARTICLE"],"source_url":"https://www.legis.iowa.gov/docs/code/2026/554.9628.pdf","current_through":"Iowa Code 2026 edition","vintage":"","retrieved_at":"2026-09-14T19:40:15Z","sha256":"c3fa99767df68c154b43f4741143b8e55632b54b87cf3d6aec34e603c8009db2","source_id":"us-ia","stale":false,"prev":"us-ia/iowa-code-554.9627","next":"us-ia/iowa-code-554.9701"},"notice":"GroundRules: Original legal text. Not legal advice."}