Secured Party Not Obligated on Contract of Debtor. The mere existence of a security interest or authority given to the debtor to dispose of or use collateral does not impose contract or tort liability upon the secured party for the debtor’s acts or omissions. Source: PL 3-56, § 1 (§ 9317).
Secured Party Not Obligated on Contract of Debtor
5 CMC § 9317, under Rights of Third Parties; Perfected and Unperfected Security Interests; Rules of Priority.
5 CMC § 9317