{"data":{"id":"us-nd/n.d.-cent.-code-41-09-123","jurisdiction":"us-nd","citation":"N.D. Cent. Code § 41-09-123","heading":"(9-628) Nonliability and limitation on liability of secured party - Liability of secondary obligor","body":"1.Subject to subsection 5, 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 chapter; and\nb.The secured party's failure to comply with this chapter does not affect the liability of the person for a deficiency.\n2.Subject to subsection 5, 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 under subdivision b of subsection 3 of section 41-09-120 more than once with respect to any one secured obligation.\n5.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 subdivision a of subsection 2 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 41 Uniform Commercial Code","Chapter 41-09 Secured Transactions"],"source_url":"https://ndlegis.gov/cencode/t41c09.pdf","current_through":"2026-07-31T11:12:02","vintage":"","retrieved_at":"2026-09-02T21:04:14Z","sha256":"d5d7fa54084dc88fd75990109ac17fd69654546932fadf6011c8e3bbb03a24d5","source_id":"us-nd","stale":true,"prev":"us-nd/n.d.-cent.-code-41-09-122","next":"us-nd/n.d.-cent.-code-41-09-124"},"notice":"GroundRules: Original legal text. Not legal advice."}