§490:9-617 Rights of transferee of collateral. (a) A secured party's disposition of collateral after default:
(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; and
(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 subsection (a), even if the secured party fails to comply with this article or the requirements of any judicial proceeding.
(c) If a transferee does not take free of the rights and interests described in subsection (a), the transferee takes the collateral subject to:
(1) The debtor's rights in the collateral;
(2) The security interest or agricultural lien under which the disposition is made; and
(3) Any other security interest or other lien. [L 2000, c 241, pt of §1]
Section: Previous 490-9-610 490-9-611 490-9-612 490-9-613 490-9-614 490-9-615 490-9-616 490-9-617 490-9-618 490-9-619 490-9-620 490-9-621 490-9-622 490-9-623 490-9-624 NextLast modified: October 27, 2016