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§490:9-617  Rights of transferee of collateral. 


Published: 2015

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     §490:9-617  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 other security interest or other lien. [L

2000, c 241, pt of §1]