Okla. Stat. tit. 12A, § 1-9-628
Nonliability and Limitation on Liability of Secured Party - Liability of Secondary Obligor
Effective Jul 1, 2001Laws 2000, SB 1519, c. 371, § 135, eff. July 1, 2001. Oklahoma Code Comment This section is new and insulates a secured party from liability to an unknown debtor or obligor or a person who has filed a financing statement against such a person. For example, a secured party may not know that the original debtor has sold the collateral subject to the security interest and thus the new owner has become a debtor. Further, a secured party is not liable because of an act or omission arising from a reasonable belief that a transaction is not a consumer--goods transaction or a consumer transaction or that the goods are not consumer goods. Compare 14A Okla. Stat. section 5-202(7). There also is insulation against double liability.
- (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 article; and
- (2) the secured party's failure to comply with this article 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 paragraph (2) of subsection (c) of Section 1-9- 625 of this title for its failure to comply with Section 1-9-616 of this title.
- (e) A secured party is not liable under paragraph (2) of subsection (c) of Section 1-9-625 of this title more than once with respect to any one secured obligation.
Laws 2000, SB 1519, c. 371, § 135, eff. July 1, 2001.
Oklahoma Code Comment
This section is new and insulates a secured party from liability to an unknown debtor or obligor or a person who has filed a financing statement against such a person. For example, a secured party may not know that the original debtor has sold the collateral subject to the security interest and thus the new owner has become a debtor.
Further, a secured party is not liable because of an act or omission arising from a reasonable belief that a transaction is not a consumer--goods transaction or a consumer transaction or that the goods are not consumer goods. Compare 14A Okla. Stat. section 5-202(7). There also is insulation against double liability.