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The Vermont Statutes Online



Title

09A

:
Uniform Commercial Code






Chapter

009

:
Secured Transactions











 

§

9-617. Rights of transferee of collateral

(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

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) 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 security

interest or other lien. (Added 1999, No. 106 (Adj. Sess.), § 2, eff. July 1,

2001.)