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(810 ILCS 5/9-628)
Sec. 9-628.
Nonliability and limitation on liability of secured party;
liability of secondary obligor.
(a) Limitation of liability to debtor or obligor. 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
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(2) the secured party's failure to comply with this
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| Article does not affect the liability of the person for a deficiency.
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(b) Limitation of liability to debtor, obligor, another secured
party, or lienholder. A secured party is not liable because of its status as secured
party:
(1) to a person that is a debtor or obligor, unless
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(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
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| financing statement against a person, unless the secured party knows:
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(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
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| for which collateral was to be used, acquired, or held; or
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(2) an obligor's representation concerning the
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| purpose for which a secured obligation was incurred.
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(d) Limitation of liability for statutory damages. A secured party
is not liable to any person under Section 9-625(c)(2) for its failure to comply
with
Section 9-616.
(e) Limitation of multiple liability for statutory damages. A
secured party is not liable under Section 9-625(c)(2) more than once with
respect to
any one secured obligation.
(Source: P.A. 91-893, eff. 7-1-01.)
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