(810 ILCS 5/9-628) (Text of Section before amendment by P.A. 103-1036 ) 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
|
|
(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 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
|
|
(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 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.)
(Text of Section after amendment by P.A. 103-1036 )
Sec. 9-628. Nonliability and limitation on liability of secured party; liability of secondary obligor.
(a) Limitation of liability to debtor or obligor. Subject to subsection (f), 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 to debtor, obligor, another secured party, or lienholder. Subject to subsection (f), a secured party is not liable because of its status as secured party:
(1) to a person that is a debtor or obligor, unless
|
|
(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 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.
(f) Exception: Limitation of liability under subsections (a) and (b) does not apply. Subsections (a) and (b) 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:
(1) the person is a debtor or obligor; and
(2) the secured party knows that the information in
|
| subsection (b)(1)(A), (B), or (C) 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.
|
|
(Source: P.A. 103-1036, eff. 1-1-25.)
|