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Tenn. Code Ann. § 47-9-628

Nonliability and limitation on liability of secured party — Liability of secondary obligor

Known as the Uniform Commercial Code

The act spans §§ 47–47 (578 sections).

Acts 2000, ch. 846, § 1.

(1) 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: 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.

(3) Limitation of liability based on status as secured party. A secured party is not liable because of its status as secured party: to a person that is a debtor or obligor, unless the secured party knows: that the person is a debtor or obligor;

(4) the identity of the person; and

(5) how to communicate with the person; or

(6) to a secured party or lienholder that has filed a financing statement against a person, unless the secured party knows: that the person is a debtor; and

(7) the identity of the person.

(8) 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: a debtor's representation concerning the purpose for which collateral was to be used, acquired, or held; or

(9) an obligor's representation concerning the purpose for which a secured obligation was incurred.

(10) 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.

(11) 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.

Current official text: Tennessee Code (LexisNexis). Digitized from the UniCourt Code Improvement Commission public-domain capture. Reproduced from public-domain Tennessee statutes; confirm against the official source for the current text. Not legal advice.