1. 1. In general: no duty owed by a secured party. Except as provided in subsection 2, a secured party does not owe a duty based on its status as secured party:

   1. a. to a person that is a debtor or obligor, unless the secured party knows:

      1. (1) that the person is a debtor or obligor;
      2. (2) the identity of the person; and
      3. (3) how to communicate with the person; or

   2. b. to a secured party or lienholder that has filed a financing statement against a person, unless the secured party knows:

      1. (1) that the person is a debtor; and
      2. (2) the identity of the person.

2. 2. Exception: secured party owes a duty to debtor or obligor. A secured party owes a duty based on its status as 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:

   1. a. the person is a debtor or obligor; and
   2. b. the secured party knows that the information in subsection 1, paragraph “a”, subparagraph (1), (2), or (3) 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.

2000 Acts, ch 1149, §103, 187; 2022 Acts, ch 1117, §36; 2024 Acts, ch 1023, §85

Referred to in §554.9601