Illinois General Assembly - Illinois Compiled Statutes

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810 ILCS 5/9-628

    (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

the secured party knows:

            (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: