1. (a) In general: no duty owed by secured party.— Except as provided in subsection (b), a secured party does not owe a duty based on its status as secured party to any of the following:

   1. (1) A person that is a debtor or obligor unless the secured party knows:

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

   2. (2) A secured party or lienholder that has filed a financing statement against a person unless the secured party knows:

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

2. (b) Exception: secured party owes 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. (1) the person is a debtor or obligor; and
   2. (2) the secured party knows that the information in subsection (a)(1) 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.

(July 1, 2024, P.L.450, No.41, eff. 60 days)

2024 Amendment. See section 1 of Act 41 in the appendix to this title for special provisions relating to findings and declarations.

Cross References. Section 9605 is referred to in section 9601 of this title.