{"data":{"id":"us-tn/tenn.-code-ann.-47-9-628","jurisdiction":"us-tn","citation":"Tenn. Code Ann. § 47-9-628","heading":"Nonliability and limitation on liability of secured party - Liability of secondary obligor","body":"(a) Limitation 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: (1) 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 (2) the secured party's failure to comply with this chapter does not affect the liability of the person for a deficiency. (b) Limitation of liability based on status as secured party. A secured party is not liable because of its status as secured party: (1) to a person that is a debtor or obligor, unless the secured party knows: (A) that the person is a debtor or obligor; (B) the identity of the person; and (C) how to communicate with the person; or (2) to a secured party or lienholder that has filed a financing statement against a person, unless the secured party knows: (A) that the person is a debtor; and (B) the identity of the person. (c) Limitation 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: (1) a debtor's representation concerning the purpose for which collateral was to be used, acquired, or held; or (2) an obligor's representation concerning the purpose for which a secured obligation was incurred. (d) Limitation of liability for statutory damages. A secured party is not liable to any person under § 47-9-625(c)(2) for its failure to comply with § 47-9-616 . (e) Limitation of multiple liability for statutory damages. A secured party is not liable under § 47-9-625(c)(2) more than once with respect to any one (1) secured obligation. Acts 2000, ch. 846, § 1.\n(a) Limitation 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: (1) 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 (2) the secured party's failure to comply with this chapter does not affect the liability of the person for a deficiency.\n(1) 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\n(2) the secured party's failure to comply with this chapter does not affect the liability of the person for a deficiency.\nto comply with this chapter does not affect the liability of the person for a deficiency.\n(1) 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\n(2) the secured party's failure to comply with this chapter does not affect the liability of the person for a deficiency.\n(b) Limitation of liability based on status as secured party. A secured party is not liable because of its status as secured party: (1) to a person that is a debtor or obligor, unless the secured party knows: (A) that the person is a debtor or obligor; (B) the identity of the person; and (C) how to communicate with the person; or (2) to a secured party or lienholder that has filed a financing statement against a person, unless the secured party knows: (A) that the person is a debtor; and (B) the identity of the person.\n(1) to a person that is a debtor or obligor, unless the secured party knows: (A) that the person is a debtor or obligor; (B) the identity of the person; and (C) how to communicate with the person; or\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 statement against a person, unless the secured party knows: (A) that the person is a debtor; and (B) the identity of the person.\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 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: (1) a debtor's representation concerning the purpose for which collateral was to be used, acquired, or held; or (2) an obligor's representation concerning the purpose for which a secured obligation was incurred.\n(1) a debtor's representation concerning the purpose for which collateral was to be used, acquired, or held; or\n(2) an obligor's representation concerning the purpose for which a secured obligation was incurred.\n(d) Limitation of liability for statutory damages. A secured party is not liable to any person under § 47-9-625(c)(2) for its failure to comply with § 47-9-616 .\n(e) Limitation of multiple liability for statutory damages. A secured party is not liable under § 47-9-625(c)(2) more than once with respect to any one (1) secured obligation.","path":["TN Code","Title 47","Chapter 9"],"source_url":"https://oss-data-us.vaquill.ai/v2026.08/us_tn_statutes.parquet","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:26Z","sha256":"0bfeceb9451b7b6e94dfb4a851070dfdb5589bf788544e9757a3dee63c7b1998","source_id":"us-tn","stale":false,"prev":"us-tn/tenn.-code-ann.-47-9-627","next":"us-tn/tenn.-code-ann.-47-9-701"},"notice":"GroundRules: Original legal text. Not legal advice."}