Uniform Commercial Code
§ 6A-9-617 Rights of transferee of
(a) Effects of disposition. A secured party's disposition of collateral
(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 [other than liens created under [cite acts or
statutes providing for liens, if any, that are not to be discharged]].
(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.
History of Section.
(P.L. 2000, ch. 182, § 6; P.L. 2000, ch. 420, § 6.)