TITLE 6A

Uniform Commercial Code

CHAPTER 6A-9

Secured Transactions

PART 6A-9-601

Default

SECTION 6A-9-617



   § 6A-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 [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.)