NRS 104.9628
Nonliability and limitation on liability of secured party

  • liability of secondary obligor.

1.

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.

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.
Part 7
Transitional Provisions Regarding 2001 Amendments

Source: Section 104.9628 — Nonliability and limitation on liability of secured party; liability of secondary obligor., https://www.­leg.­state.­nv.­us/NRS/NRS-104.­html#NRS104Sec9628.

104.9601
Rights after default 104.9602
Waiver and variance of rights and duties of debtor and obligor. 104.9603
Agreement on standards concerning rights and duties of parties. 104.9604
Procedure if security agreement covers real property or fixtures. 104.9605
Duty to unknown debtor or secondary obligor. 104.9606
Time of default for agricultural lien. 104.9607
Collection and enforcement by secured party. 104.9608
Application of proceeds of collection or enforcement 104.9609
Secured party’s right to take possession or dispose of collateral after default. 104.9610
Disposition of collateral after default. 104.9611
Notification before disposition of collateral. 104.9612
Timeliness of notification before disposition of collateral. 104.9613
Contents and form of notification before disposition of collateral: General. 104.9614
Contents and form of notification before disposition of collateral: Consumer-goods transaction. 104.9615
Application of proceeds of disposition 104.9616
Explanation of calculation of surplus or deficiency. 104.9617
Effect of disposition of collateral by secured party after default 104.9618
Rights and duties of certain secondary obligors. 104.9619
Transfer of record or legal title. 104.9620
Acceptance of collateral in full or partial satisfaction of obligation 104.9621
Notification of proposal to accept collateral in satisfaction of obligation. 104.9622
Effect of acceptance of collateral in satisfaction of obligation. 104.9623
Redemption of collateral. 104.9624
Waiver of right to notification of disposition of collateral 104.9625
Remedies for secured party’s failure to comply with article. 104.9626
Action in which deficiency or surplus is in issue. 104.9627
Determination of whether conduct was commercially reasonable. 104.9628
Nonliability and limitation on liability of secured party
Last Updated

Jun. 24, 2021

§ 104.9628’s source at nv​.us