{"data":{"id":"us-ny/n.y.-uniform-commercial-code-law-9-628","jurisdiction":"us-ny","citation":"N.Y. Uniform Commercial Code Law § 9-628","heading":"Nonliability and Limitation on Liability of Secured Party; Liability of Secondary Obligor","body":"Section 9--628. Nonliability and Limitation on Liability of Secured\n                  Party; Liability of Secondary Obligor.\n  (a) Limitation of liability of secured party for noncompliance with\narticle. Unless a secured party knows that a person is a debtor or\nobligor, knows the identity of the person, and knows how to communicate\nwith the person:\n       (1) the secured party is not liable to the person, or to a\n           secured party or lienholder that has filed a financing\n           statement against the person, for failure to comply with this\n           article; and\n       (2) the secured party's failure to comply with this article does\n           not affect the liability of the person for a deficiency.\n  (b) Limitation of liability based on status as secured party. A\nsecured party is not liable because of its status as secured party:\n       (1) to a person that is a debtor or obligor, unless the secured\n           party knows:\n           (A) that the person is a debtor or obligor;\n           (B) the identity of the person; and\n           (C) how to communicate with the person; or\n       (2) to a secured party or lienholder that has filed a financing\n           statement against a person, unless the secured party knows:\n           (A) that the person is a debtor; and\n           (B) the identity of the person.\n  (c) Limitation of liability if reasonable belief that transaction not\na consumer-goods transaction or consumer transaction. A secured party is\nnot liable to any person, and a person's liability for a deficiency is\nnot affected, because of any act or omission arising out of the secured\nparty's reasonable belief that a transaction is not a consumer-goods\ntransaction or a consumer transaction or that goods are not consumer\ngoods, if the secured party's belief is based on its reasonable reliance\non:\n       (1) a debtor's representation concerning the purpose for which\n           collateral was to be used, acquired, or held; or\n       (2) an obligor's representation concerning the purpose for which\n           a secured obligation was incurred.\n  (d) Limitation of liability for statutory damages. A secured party is\nnot liable to any person under Section 9--625 (c) (2) for its failure to\ncomply with Section 9--616.\n  (e) Limitation of multiple liability for statutory damages. A secured\nparty is not liable under Section 9--625 (c) (2) more than once with\nrespect to any one secured obligation.","path":["Uniform Commercial Code Law","Article 9. Secured Transactions","Part 6. Default","Subpart 2. Noncompliance With Article"],"source_url":"https://legislation.nysenate.gov/api/3/laws/UCC/9-628","current_through":"2026-09-11","vintage":"","retrieved_at":"2026-09-14T19:32:45Z","sha256":"208f5e5c8d0d2982efefa3aa8f88d5faee16249cc5e4c4f4dfe38575c9dab38c","source_id":"us-ny","stale":false,"prev":"us-ny/n.y.-uniform-commercial-code-law-9-627","next":"us-ny/n.y.-uniform-commercial-code-law-9-700"},"notice":"GroundRules: Original legal text. Not legal advice."}