Section 11-9-628. Nonliability and limitation on liability of secured party; liability of secondary obligor.

   (a)  Limitation of liability of secured party for noncompliance with article. 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)  Limitation of liability based on status as secured party. 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)  Limitation of liability if reasonable belief that transaction not a consumer goods transaction or consumer transaction. 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)  Limitation of liability for statutory damages. A secured party is not liable to any person under paragraph (2) of subsection (c) of Code Section 11-9-625 for its failure to comply with Code Section 11-9-616.

(e)  Limitation of multiple liability for statutory damages. A secured party is not liable under paragraph (2) of subsection (c) of Code Section 11-9-625 more than once with respect to any one secured obligation.

Code 1981, § 11-9-628, enacted by Ga. L. 2001, p. 362, § 1.