12A:9-617 Rights of transferee of collateral.
12A: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 chapter 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.
L.2001, c.117, s.1; amended 2001, c.386, s.106.
Section: Previous 12a-9-610 12a-9-611 12a-9-612 12a-9-613 12a-9-614 12a-9-615 12a-9-616 12a-9-617 12a-9-618 12a-9-619 12a-9-620 12a-9-621 12a-9-622 12a-9-623 12a-9-624 Next
Last modified: October 11, 2016