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:
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 b. The secured party's failure to comply with this chapter does not affect the liability of the person for a deficiency.
2. Subject to subsection 5, a secured party is not liable because of its status as secured party:
a. To a person that is a debtor or obligor, unless the secured party knows:
(1) That the person is a debtor or obligor;
(2) The identity of the person; and (3) How to communicate with the person; or b. To a secured party or lienholder that has filed a financing statement against a person, unless the secured party knows:
(1) That the person is a debtor; and (2) The identity of the person.
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:
a. A debtor's representation concerning the purpose for which collateral was to be used, acquired, or held; or b. An obligor's representation concerning the purpose for which a secured obligation was incurred.
4. 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.
5. 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:
a. The person is a debtor or obligor; and b. 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.