The existence of a security interest, agricultural lien, or authority given to a debtor to dispose of or use collateral, without more, does not subject a secured party to liability in contract or tort for the debtor's acts or omissions.
Tex. Bus. & Com. Code § 9.402
SECURED PARTY NOT OBLIGATED ON CONTRACT OF DEBTOR OR IN TORT
Known as the Uniform Commercial Code
The act spans §§ 1–12 (616 sections).
Applied in 2 court decisions — leading case Stanton v. Texas Drug Co. (In Re Stanton) (2000)
Most recently applied in Stage Stores, Inc. v. General Electric Capital Corp. (In Re Stage Stores, Inc.) (October 2001)
Amended by Acts 1999, 76th Leg., ch. 414, Sec. 1.01, eff
Official source: Texas Constitution and Statutes. Reproduced from public-domain Texas statutes; confirm against the official source for the current text. Not legal advice.