The Arizona Revised Statutes have been updated to include the revised sections from the 56th Legislature, 1st Regular Session. Please note that the next update of this compilation will not take place until after the conclusion of the 56th Legislature, 2nd Regular Session, which convenes in January 2024.
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This online version of the Arizona Revised Statutes is primarily maintained for legislative drafting purposes and reflects the version of law that is effective on January 1st of the year following the most recent legislative session. The official version of the Arizona Revised Statutes is published by Thomson Reuters.
47-9628 - Nonliability and limitation on liability of secured party; liability of secondary obligor
47-9628. Nonliability and limitation on liability of secured party; liability of secondary obligor
A. 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. 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. 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. A secured party is not liable to any person under section 47-9625, subsection C, paragraph 2 for its failure to comply with section 47-9616.
E. A secured party is not liable under section 47-9625, subsection C, paragraph 2 more than once with respect to any one secured obligation.