{"data":{"id":"us-nc/n.c.-gen.-stat.-25-9-628","jurisdiction":"us-nc","citation":"N.C. Gen. Stat. § 25-9-628","heading":"Nonliability and limitation on liability of secured party; liability of secondary obligor.","body":"(a)\tLimitation of Liability of Secured Party for Noncompliance with Article. - Subject to subsection (f) of this section, 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, both of the following apply:\n(1)\tThe 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.\n(2)\tThe secured party's failure to comply with this Article does not affect the liability of the person for a deficiency.\n(b)\tLimitation of Liability Based on Status as Secured Party. - Subject to subsection (f) of this section, a secured party is not liable because of its status as secured party to either of the following:\n(1)\tTo a person that is a debtor or obligor, unless the secured party knows all of the following:\na.\tThat the person is a debtor or obligor.\nb.\tThe identity of the person.\nc.\tHow to communicate with the person.\n(2)\tTo a secured party or lienholder that has filed a financing statement against a person, unless the secured party knows both of the following:\na.\tThat the person is a debtor.\nb.\tThe identity of the person.\n(c)\tLimitation 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 either of the following:\n(1)\tA debtor's representation concerning the purpose for which collateral was to be used, acquired, or held.\n(2)\tAn obligor's representation concerning the purpose for which a secured obligation was incurred.\n(d)\tLimitation of Liability for Statutory Damages. - A secured party is not liable to any person under G.S. 25-9-625(c)(2) for its failure to comply with G.S. 25-9-616.\n(e)\tLimitation of Multiple Liability for Statutory Damages. - A secured party is not liable under G.S. 25-9-625(c)(2) more than once with respect to any one secured obligation.\n(f)\tException to Limitation of Liability Under Subsections (a) and (b). - Subsections (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, both of the following apply:\n(1)\tThe person is a debtor or obligor.\n(2)\tThe secured party knows that the information in sub-subdivision (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. (2000-169, s. 1; 2025-25, s. 107.)","path":["Chapter 25. Uniform Commercial Code.","Article 9. Secured Transactions.","Part 6. Default."],"source_url":"https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_25/GS_25-9-628.html","current_through":"S.L. 2026-30","vintage":"","retrieved_at":"2026-08-27T17:58:47Z","sha256":"4e6172e97dc83bfafd6d6876a6e1dd1648c686f5fc94bc7679ca7415186ae3bd","source_id":"us-nc","stale":false,"prev":"us-nc/n.c.-gen.-stat.-25-9-627","next":"us-nc/n.c.-gen.-stat.-25-9-701"},"notice":"GroundRules: Original legal text. Not legal advice."}