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 the identity of the person, and knows how to communicate with the person:(a) 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 chapter; and(b) The secured party’s failure to comply with this chapter 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 who is a debtor or obligor, unless the secured party knows:1. That the person is a debtor or obligor;2. The identity of the person; and3. How to communicate with the person; or(b) To a secured party or lienholder that has filed a financing statement against a person, unless the secured party knows:1. That the person is a debtor; and2. The identity of the person.(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 s. 679.625(3)(b) for its failure to comply with s. 679.616.(5) A secured party is not liable under s. 679.625(3)(b) 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 in subparagraph (2)(a)1., subparagraph (2)(a)2., or subparagraph (2)(a)3., 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.History.—s. 7, ch. 2001-198; s. 119, ch. 2025-92.