1. 1. Duties to unknown persons — general rule. 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. When secured party owes duty to debtor notwithstanding subsection 1. A secured party owes a duty based on its status as a secured party to a person that is a debtor if, at the time the secured party obtains control of a controllable account, controllable electronic record, or controllable payment intangible, the secured party has knowledge that the nature of the collateral or a system in which the collateral is recorded would prevent the secured party from acquiring the knowledge specified in subsection 1, paragraph “a”, subparagraph (1), (2), or (3).

Liability limitations; see §554.9628

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

Referred to in §554.9601