{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/8.9A-628.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/8.9A-628.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/8.9A-628.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/8.9A-628.html"}],"law_id":71391,"edition_id":1,"section_id":71391,"structure_id":15991,"section_number":"8.9A-628","catch_line":"Nonliability and limitation on liability of secured party; liability of secondary obligor","history":"2000, c. 1007; 2024, c. 652.","full_text":"a\n\nLimitation of liability of secured party for noncompliance with title. 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:1\n\nthe 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 title; and2\n\nthe secured party’s failure to comply with this title does not affect the liability of the person for a deficiency.b\n\nLimitation of liability based on status as secured party. Subject to subsection (f), a secured party is not liable because of its status as secured party:1\n\nto a person that is a debtor or obligor, unless the secured party knows:A\n\nthat the person is a debtor or obligor;B\n\nthe identity of the person; andC\n\nhow to communicate with the person; or2\n\nto a secured party or lienholder that has filed a financing statement against a person, unless the secured party knows:A\n\nthat the person is a debtor; andB\n\nthe identity of the person.c\n\nLimitation 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\n\na debtor’s representation concerning the purpose for which collateral was to be used, acquired, or held; or2\n\nan obligor’s representation concerning the purpose for which a secured obligation was incurred.d\n\nLimitation of liability for statutory damages. A secured party is not liable to any person under § 8.9A-625 (c) (2) for its failure to comply with § 8.9A-616.e\n\nLimitation of multiple liability for statutory damages. A secured party is not liable under § 8.9A-625 (c) (2) more than once with respect to any one secured obligation.f\n\nLimitation of liability under subsections (a) and (b) does not apply. Subsections (a) and (b) 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:1\n\nthe person is a debtor or obligor; and2\n\nthe secured party knows that the information in subsection (b)(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.","order_by":null,"text":{"0":{"id":257377,"text":"Limitation of liability of secured party for noncompliance with title. 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:","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"next_prefix":"a1"},"1":{"id":257378,"text":"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 title; and","type":"section","prefixes":["a","1"],"prefix":"1","entire_prefix":"a1","prefix_anchor":"a1","level":2,"prior_prefix":"a","next_prefix":"a2"},"2":{"id":257379,"text":"the secured party’s failure to comply with this title does not affect the liability of the person for a deficiency.","type":"section","prefixes":["a","2"],"prefix":"2","entire_prefix":"a2","prefix_anchor":"a2","level":2,"prior_prefix":"a1","next_prefix":"b"},"3":{"id":257380,"text":"Limitation of liability based on status as secured party. Subject to subsection (f), a secured party is not liable because of its status as secured party:","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"a2","next_prefix":"b1"},"4":{"id":257381,"text":"to a person that is a debtor or obligor, unless the secured party knows:","type":"section","prefixes":["b","1"],"prefix":"1","entire_prefix":"b1","prefix_anchor":"b1","level":2,"prior_prefix":"b","next_prefix":"A"},"5":{"id":257382,"text":"that the person is a debtor or obligor;","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"prior_prefix":"b1","next_prefix":"B"},"6":{"id":257383,"text":"the identity of the person; and","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"7":{"id":257384,"text":"how to communicate with the person; or","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"C2"},"8":{"id":257385,"text":"to a secured party or lienholder that has filed a financing statement against a person, unless the secured party knows:","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C","next_prefix":"A"},"9":{"id":257386,"text":"that the person is a debtor; and","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"prior_prefix":"C2","next_prefix":"B"},"10":{"id":257387,"text":"the identity of the person.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"c"},"11":{"id":257388,"text":"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:","type":"section","prefixes":["c"],"prefix":"c","entire_prefix":"c","prefix_anchor":"c","level":1,"prior_prefix":"B","next_prefix":"c1"},"12":{"id":257389,"text":"a debtor’s representation concerning the purpose for which collateral was to be used, acquired, or held; or","type":"section","prefixes":["c","1"],"prefix":"1","entire_prefix":"c1","prefix_anchor":"c1","level":2,"prior_prefix":"c","next_prefix":"c2"},"13":{"id":257390,"text":"an obligor’s representation concerning the purpose for which a secured obligation was incurred.","type":"section","prefixes":["c","2"],"prefix":"2","entire_prefix":"c2","prefix_anchor":"c2","level":2,"prior_prefix":"c1","next_prefix":"d"},"14":{"id":257391,"text":"Limitation of liability for statutory damages. A secured party is not liable to any person under § 8.9A-625 (c) (2) for its failure to comply with § 8.9A-616.","type":"section","prefixes":["d"],"prefix":"d","entire_prefix":"d","prefix_anchor":"d","level":1,"prior_prefix":"c2","next_prefix":"e"},"15":{"id":257392,"text":"Limitation of multiple liability for statutory damages. A secured party is not liable under § 8.9A-625 (c) (2) more than once with respect to any one secured obligation.","type":"section","prefixes":["e"],"prefix":"e","entire_prefix":"e","prefix_anchor":"e","level":1,"prior_prefix":"d","next_prefix":"f"},"16":{"id":257393,"text":"Limitation of liability under subsections (a) and (b) does not apply. Subsections (a) and (b) 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:","type":"section","prefixes":["f"],"prefix":"f","entire_prefix":"f","prefix_anchor":"f","level":1,"prior_prefix":"e","next_prefix":"f1"},"17":{"id":257394,"text":"the person is a debtor or obligor; and","type":"section","prefixes":["f","1"],"prefix":"1","entire_prefix":"f1","prefix_anchor":"f1","level":2,"prior_prefix":"f","next_prefix":"f2"},"18":{"id":257395,"text":"the secured party knows that the information in subsection (b)(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.","type":"section","prefixes":["f","2"],"prefix":"2","entire_prefix":"f2","prefix_anchor":"f2","level":2,"prior_prefix":"f1"}},"ancestry":[{"id":15991,"edition_id":1,"name":"Noncompliance With Title","identifier":"2","label":"subpart","depth":3,"order_by":1,"parent_id":15262,"metadata":{},"date_created":"2026-06-26 04:03:18","date_modified":"2026-06-26 04:03:18","permalink":{"id":284393,"object_type":"structure","relational_id":15991,"identifier":"2","token":"8.9A\/6\/2","url":"\/8.9A\/6\/2\/","edition_id":1,"permalink":0,"preferred":1}},{"id":15262,"edition_id":1,"name":"Default","identifier":"6","label":"part","depth":2,"order_by":1,"parent_id":13277,"metadata":{},"date_created":"2026-06-26 03:53:25","date_modified":"2026-06-26 03:53:25","permalink":{"id":284293,"object_type":"structure","relational_id":15262,"identifier":"6","token":"8.9A\/6","url":"\/8.9A\/6\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13277,"edition_id":1,"name":"Commercial Code \u2014 Secured Transactions","identifier":"8.9A","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:44:33","date_modified":"2026-06-26 03:44:33","permalink":{"id":283833,"object_type":"structure","relational_id":13277,"identifier":"8.9A","token":"8.9A","url":"\/8.9A\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":62405,"structure_id":15991,"section_number":"8.9A-625","catch_line":"Remedies for secured party's failure to comply with title","url":"\/8.9A-625\/","token":"8.9A\/6\/2\/8.9A-625","metadata":false},{"id":77315,"structure_id":15991,"section_number":"8.9A-626","catch_line":"Action in which deficiency or surplus is in issue","url":"\/8.9A-626\/","token":"8.9A\/6\/2\/8.9A-626","metadata":false},{"id":64205,"structure_id":15991,"section_number":"8.9A-627","catch_line":"Determination of whether conduct was commercially reasonable","url":"\/8.9A-627\/","token":"8.9A\/6\/2\/8.9A-627","metadata":false},{"id":71391,"structure_id":15991,"section_number":"8.9A-628","catch_line":"Nonliability and limitation on liability of secured party; liability of secondary obligor","url":"\/8.9A-628\/","token":"8.9A\/6\/2\/8.9A-628","metadata":false}],"previous_section":{"id":64205,"structure_id":15991,"section_number":"8.9A-627","catch_line":"Determination of whether conduct was commercially reasonable","url":"\/8.9A-627\/","token":"8.9A\/6\/2\/8.9A-627","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.9A-628\/","history_text":"

This law was first created in 2000. The record of its establishment is cataloged in chapter 1007<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 1 time. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. That modification is as follows: in 2024, chapter 652<\/a>.<\/p>","references":[{"id":77315,"section_number":"8.9A-626","catch_line":"Action in which deficiency or surplus is in issue","order_by":null,"url":"\/8.9A-626\/"}],"refers_to":[{"id":62405,"section_number":"8.9A-625","catch_line":"Remedies for secured party's failure to comply with title","order_by":null,"url":"\/8.9A-625\/"}],"permalink":{"id":284407,"object_type":"law","relational_id":71391,"identifier":"8.9A-628","token":"8.9A\/6\/2\/8.9A-628","url":"\/8.9A-628\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/8.9A-628\/","token":"8.9A\/6\/2\/8.9A-628","dublin_core":{"Title":"Nonliability and limitation on liability of secured party; liability of secondary obligor","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.9A-628","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

a.<\/span> Limitation of liability of secured party<\/span> for noncompliance with title. Subject to subsection (f), unless a secured party<\/span> knows that a person is a debtor or obligor, knows the identity of the person, and knows how to communicate with the person: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> the secured party<\/span> is not liable to the person, or to a secured party<\/span> or lienholder that has filed a financing statement against the person, for failure to comply with this title; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> the secured party<\/span>’s failure to comply with this title does not affect the liability of the person for a deficiency. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> Limitation of liability based on status as secured party<\/span>. Subject to subsection (f), a secured party<\/span> is not liable because of its status as secured party<\/span>: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> to a person that is a debtor or obligor, unless the secured party<\/span> knows: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

A.<\/span> that the person is a debtor or obligor; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> the identity of the person; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> how to communicate with the person; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> to a secured party<\/span> or lienholder that has filed a financing statement against a person, unless the secured party<\/span> knows: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

A.<\/span> that the person is a debtor; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> the identity of the person. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> Limitation of liability if reasonable belief that transaction not a consumer-goods transaction or consumer transaction. A secured party<\/span> 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<\/span>’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<\/span>’s belief is based on its reasonable reliance on: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> a debtor’s representation concerning the purpose for which collateral<\/span> was to be used, acquired, or held; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> an obligor’s representation concerning the purpose for which a secured obligation was incurred. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

d.<\/span> Limitation of liability for statutory damages<\/span>. A secured party<\/span> is not liable to any person under § 8.9A-625<\/a> (c) (2) for its failure to comply with § 8.9A-616<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

e.<\/span> Limitation of multiple liability for statutory damages<\/span>. A secured party<\/span> is not liable under § 8.9A-625<\/a> (c) (2) more than once with respect to any one secured obligation. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

f.<\/span> Limitation of liability under subsections (a) and (b) does not apply. Subsections (a) and (b) do not apply to limit the liability of a secured party<\/span> to a person if, at the time the secured party<\/span> obtains control of collateral<\/span> that is a controllable account, controllable electronic record, or controllable payment intangible or at the time the security interest attaches to the collateral<\/span>, whichever is later: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> the person is a debtor or obligor; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> the secured party<\/span> knows that the information in subsection (b)(1)(A), (B), or (C) relating to the person is not provided by the collateral<\/span>, a record attached to or logically associated with the collateral<\/span>, or the system in which the collateral<\/span> is recorded. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nNONLIABILITY AND LIMITATION ON LIABILITY OF SECURED PARTY; LIABILITY OF\nSECONDARY OBLIGOR (\u00a7 8.9A-628)\n\na. Limitation of liability of secured party for noncompliance with title.\nSubject to subsection (f), unless a secured party knows that a person is a\ndebtor or obligor, knows the identity of the person, and knows how to\ncommunicate with the person:\n\n 1. the secured party is not liable to the person, or to a secured party or\n lienholder that has filed a financing statement against the person, for\n failure to comply with this title; and\n\n 2. the secured party’s failure to comply with this title does not affect\n the liability of the person for a deficiency.\n\nb. Limitation of liability based on status as secured party. Subject to\nsubsection (f), a secured party is not liable because of its status as secured\nparty:\n\n 1. to a person that is a debtor or obligor, unless the secured party knows:\n\nA. that the person is a debtor or obligor;\n\nB. the identity of the person; and\n\nC. how to communicate with the person; or\n\n 2. to a secured party or lienholder that has filed a financing statement\n against a person, unless the secured party knows:\n\nA. that the person is a debtor; and\n\nB. the identity of the person.\n\nc. Limitation of liability if reasonable belief that transaction not a\nconsumer-goods transaction or consumer transaction. A secured party is not\nliable to any person, and a person’s liability for a deficiency is not\naffected, because of any act or omission arising out of the secured\nparty’s reasonable belief that a transaction is not a consumer-goods\ntransaction or a consumer transaction or that goods are not consumer goods, if\nthe secured party’s belief is based on its reasonable reliance on:\n\n 1. a debtor’s representation concerning the purpose for which collateral\n was to be used, acquired, or held; or\n\n 2. an obligor’s representation concerning the purpose for which a\n secured obligation was incurred.\n\nd. Limitation of liability for statutory damages. A secured party is not liable\nto any person under § 8.9A-625 (c) (2) for its failure to comply with\n§ 8.9A-616.\n\ne. Limitation of multiple liability for statutory damages. A secured party is\nnot liable under § 8.9A-625 (c) (2) more than once with respect to any one\nsecured obligation.\n\nf. Limitation of liability under subsections (a) and (b) does not apply.\nSubsections (a) and (b) do not apply to limit the liability of a secured party\nto a person if, at the time the secured party obtains control of collateral that\nis a controllable account, controllable electronic record, or controllable\npayment intangible or at the time the security interest attaches to the\ncollateral, whichever is later:\n\n 1. the person is a debtor or obligor; and\n\n 2. the secured party knows that the information in subsection (b)(1)(A), (B),\n or (C) relating to the person is not provided by the collateral, a record\n attached to or logically associated with the collateral, or the system in\n which the collateral is recorded.\n\nHISTORY: 2000, c. 1007; 2024, c. 652.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}