Michigan § 440.9628 - Nonliability and limitation on liability of secured party; liability of secondary 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, both of the following apply:

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.

The secured party's failure to comply with this article does not affect the liability of the person for a deficiency.

A secured party is not liable because of its status as secured party to either of the following:

To a person that is a debtor or obligor, unless the secured party knows all of the following:

That the person is a debtor or obligor.

The identity of the person.

How to communicate with the person.

To a secured party or lienholder that has filed a financing statement against a person, unless the secured party knows both of the following:

That the person is a debtor.

The identity of the person.

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 or more of the following:

A debtor's representation concerning the purpose for which collateral was to be used, acquired, or held.

An obligor's representation concerning the purpose for which a secured obligation was incurred.

A secured party is not liable to any person under section 9625(3)(b) for its failure to comply with section 9616.

A secured party is not liable under section 9625(3)(b) more than once with respect to any 1 secured obligation.