S.C. Code Ann. § 36-9-628 – 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. (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. (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. (1) to a person that is a debtor or obligor, unless the secured party knows:
  1. (A) that the person is a debtor or obligor;
  2. (B) the identity of the person; and
  3. (C) how to communicate with the person; or
2. (2) to a secured party or lienholder that has filed a financing statement against a person, unless the secured party knows:
  1. (A) that the person is a debtor; and
  2. (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. (1) a debtor's representation concerning the purpose for which collateral was to be used, acquired, or held; or
2. (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 36-9-625(c)(2) for its failure to comply with Section 36-9-616.
(e) A secured party is not liable under Section 36-9-625(c)(2) more than once with respect to any one secured obligation.

HISTORY: 2001 Act No. 67, Section 12. "Collateral" Section 36-9-102(a)(12) "Consumer goods" Section 36-9-102(a)(23) "Consumer-goods transaction" Section 36-9-102(a)(24) "Consumer transaction" Section 36-9-102(a)(26) "Debtor" Section 36-9-102(a)(28) "Financing statement" Section 36-9-102(a)(39) "Know" Section 36-1-201(25) [see now Section 36-1-202] "Obligor" Section 36-9-102(a)(59) "Person" Section 36-1-201(30) "Secured party" Section 36-9-102(a)(72)