Legislation

* Section 9--605. Unknown Debtor or Secondary Obligor.

A secured party does not owe a duty based on 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.

* NB Effective until June 3, 2026
* Section 9--605. Unknown Debtor or Secondary Obligor.
(a) In general: No duty owed by secured party. Except as provided in
subsection (b), a secured party does not owe a duty based on 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.

(b) Exception: Secured party owes duty to debtor or obligor. A

secured party owes a duty based on its status as 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:

(1) the person is a debtor or obligor; and

(2) the secured party knows that the information in subsection

(a)(1)(A), (B), or (C) 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.

* NB Effective June 3, 2026