{"data":{"id":"us-ut/utah-code-70a-9a-628","jurisdiction":"us-ut","citation":"Utah Code § 70A-9a-628","heading":"Nonliability and limitation on liability of secured party -- Liability of secondary obligor.","body":"(1) Subject to Subsection (6), 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(a) 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(b) the secured party's failure to comply with this chapter does not affect the liability of the person for a deficiency.\n(2) Subject to Subsection (6), a secured party is not liable because of its status as secured party:\n(a) to a person that is a debtor or obligor, unless the secured party knows:\n(i) that the person is a debtor or obligor;\n(ii) the identity of the person; and\n(iii) how to communicate with the person; or\n(b) to a secured party or lienholder that has filed a financing statement against a person, unless the secured party knows:\n(i) that the person is a debtor; and\n(ii) the identity of the person.\n(3) 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(a) a debtor's representation concerning the purpose for which collateral was to be used, acquired, or held; or\n(b) an obligor's representation concerning the purpose for which a secured obligation was incurred.\n(4) A secured party is not liable to any person under Subsection 70A-9a-625(3)(b) for its failure to comply with Section 70A-9a-616.\n(5) A secured party is not liable under Section 70A-9a-625(3)(b) more than once with respect to any one secured obligation.\n(6) 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:\n(a) the person is a debtor or obligor; and\n(b) the secured party knows that the information in Subsection (2)(a)(i), (ii), or (iii) 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 70A Uniform Commercial Code","Chapter 70A-9a Uniform Commercial Code - Secured Transactions","Part 70A-9a-6 Default"],"source_url":"https://le.utah.gov/xcode/Title70A/Chapter9a/70A-9a-S628.html","current_through":"2026 General Session","vintage":"","retrieved_at":"2026-09-03T11:34:34Z","sha256":"a7715c352cc985c12f8c524699469b8f363e244f87dcc6aa96e934c03a358343","source_id":"us-ut","stale":false,"prev":"us-ut/utah-code-70a-9a-627","next":"us-ut/utah-code-70a-9a-701"},"notice":"GroundRules: Original legal text. Not legal advice."}