{"data":{"id":"us-nj/n.j.-stat.-12a-9-628","jurisdiction":"us-nj","citation":"N.J. Stat. § 12A:9-628","heading":"Nonliability and limitation on liability of secured party; liability of secondary obligor.","body":"Nonliability and Limitation on Liability of Secured Party; Liability of Secondary Obligor.\n(a)\tLimitation of liability of secured party for noncompliance with chapter.  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)\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 chapter; and\n(2)\tthe secured party's failure to comply with this chapter does not affect the liability of the person for a deficiency.\n(b)\tLimitation of liability based on status as secured party.  A secured party is not liable because of its status as secured party:\n(1)\tto a person who is a debtor or obligor, unless the secured party knows:\n(A)\tthat the person is a debtor or obligor;\n(B)\tthe identity of the person; and\n(C)\thow to communicate with the person; or\n(2)\tto a secured party or lienholder that has filed a financing statement against a person, unless the secured party knows:\n(A)\tthat the person is a debtor; and\n(B)\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:\n(1)\ta debtor's representation concerning the purpose for which collateral was to be used, acquired, or held; or\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\n12A:9-625 (c) (2) for its failure to comply with 12A:9-616.\n(e)\tLimitation of multiple liability for statutory damages.  A secured party is not liable under 12A:9-625 (c) (2) more than once with respect to any one secured obligation.\nL.2001, c.117, s.1; amended 2001, c.386, s.117.","path":["TITLE 12A COMMERCIAL TRANSACTIONS"],"source_url":"https://pub.njleg.state.nj.us/statutes/STATUTES-TEXT.zip","current_through":"P.L.2025, c.405, and J.R.22","vintage":"","retrieved_at":"2026-08-27T17:54:13Z","sha256":"bc99c2156f36bc9e25acd5c53b0219a8f5b25aabf574fabdddc0eca576752a6c","source_id":"us-nj","stale":true,"prev":"us-nj/n.j.-stat.-12a-9-627","next":"us-nj/n.j.-stat.-12a-9-701"},"notice":"GroundRules: Original legal text. Not legal advice."}