Illinois Compiled Statutes 810 ILCS 5 Uniform Commercial Code. Section 9-617

    (810 ILCS 5/9-617)

    Sec. 9-617. Rights of transferee of collateral.

    (a) Effects of disposition. 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) Rights of good-faith transferee. 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) Rights of other transferee. 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.

(Source: P.A. 91-893, eff. 7-1-01.)

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Last modified: February 18, 2015