California Commercial Code Section 9617
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California Laws > Commercial Code > California Commercial Code Section 9617
9617. (a) A secured party's disposition of collateral after default
does all of the following:
(1) Transfers to a transferee for value all of the debtor's rights
in the collateral.
(2) Discharges the security interest under which the disposition
is made.
(3) Discharges any subordinate security interest or other
subordinate lien.
(b) A transferee that acts in good faith takes free of the rights
and interests described in subdivision (a), even if the secured party
fails to comply with this division or the requirements of any
judicial proceeding.
(c) If a transferee does not take free of the rights and interests
described in subdivision (a), the transferee takes the collateral
subject to all of the following:
(1) The debtor's rights in the collateral.
(2) The security interest or agricultural lien under which the
disposition is made.
(3) Any other security interest or other lien.
Section: 9617
Last modified: February 22, 2013
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