Missouri Revised Statutes













Chapter 400

Uniform Commercial Code

←400.09-616

Section 400.9-617.1

400.09-618→

August 28, 2015

Rights of transferee of collateral.

400.9-617. (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. 2001 S.B. 288)



Effective 7-01-01







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