(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 who acts in good faith takes free of the rights and interests described in (a) of this section even if the secured party fails to comply with this chapter or the requirements of a judicial proceeding.
(c) If a transferee does not take free of the rights and interests described in (a) of this section, 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.
Section: Previous 45.29.610 45.29.611 45.29.612 45.29.613 45.29.614 45.29.615 45.29.616 45.29.617 45.29.618 45.29.619 45.29.620 45.29.621 45.29.622 45.29.623 45.29.624 NextLast modified: November 15, 2016