1. (1) 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. (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; or

   2. (b) to 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. (2) 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)(a)(i), (ii), or (iii) 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.

Amended by Chapter 322, 2026 General Session