1. The fact that a greater amount could have been obtained by a collection, enforcement, disposition, or acceptance at a different time or in a different method from that selected by the secured party is not of itself sufficient to preclude the secured party from establishing that the collection, enforcement, disposition, or acceptance was made in a commercially reasonable manner. 2. A disposition of collateral is made in a commercially reasonable manner if the disposition is made: a. In the usual manner on any recognized market; b. At the price current in any recognized market at the time of the disposition; or c. Otherwise in conformity with reasonable commercial practices among dealers in the type of property that was the subject of the disposition. 3. A collection, enforcement, disposition, or acceptance is commercially reasonable if it has been approved: a. In a judicial proceeding; b. By a bona fide creditors' committee; c. By a representative of creditors; or d. By an assignee for the benefit of creditors. 4. Approval under subsection 3 need not be obtained, and lack of approval does not mean that the collection, enforcement, disposition, or acceptance is not commercially reasonable.
41-09-123. (9-628) Nonliability and limitation on liability of secured party - Liability of secondary obligor. 1. Subject to subsection 5, 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 5, a secured party is not liable because of its status as secured party: a. To a person that 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; and (3) 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; and (2) 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 under subdivision b of subsection 3 of section 41-09-120 more than once with respect to any one secured obligation. 5. 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 subdivision 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.