Nevada § 104.9628 - Nonliability and limitation on liability of secured party; liability of secondary obligor

§ 104.9628. Nonliability and limitation on liability of secured party; liability of secondary obligor

1. Subject to subsection 6, unless a secured party knows that a person is a debtor

or obligor, knows his or her identity, and knows how to communicate with him or her: (a) The secured party is not liable to the person, or to a secured party or lienholder

that has filed a financing statement against him or her, for failure to comply with

this article; and (b) The secured party's failure to comply with this article does not affect the liability

of the person for a deficiency. 2. Subject to subsection 6, a secured party is not liable because of its status as

a secured party: (a) To a person that is a debtor or obligor, unless the secured party knows: (1) That he or she is a debtor or obligor; (2) His or her identity; and (3) How to communicate with him or her; or (b) To a secured party or lienholder that has filed a financing statement against

a person, unless the secured party knows: (1) That he or she is a debtor; and (2) His or her identity. 3. 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: (a) A debtor's representation concerning the purpose for which collateral was to be

used, acquired or held; or (b) An obligor's representation concerning the purpose for which a secured obligation

was incurred. 4. A secured party is not liable to any person under paragraph (b) of subsection 3

of NRS 104.9625 for its failure to comply with NRS 104.9616 . 5. A secured party is not liable under paragraph (b) of subsection 3 of NRS 104.9625 more than once with respect to any one secured obligation. 6. Subsections 1 and 2 do not apply to limit the liability of 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: (a) The person is a debtor or obligor; and (b) The secured party knows that the information specified in subparagraph (1), (2)

or (3) of paragraph (a) of subsection 2 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.