Section 36-9-617 - 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 chapter 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.2001 Act No. 67, Section 12.Code Commissioner's Note
In 2014, at the direction of the Code Commissioner, in subsection (a)(3), deleted "[other than liens created under [cite acts or statutes providing for liens, if any, that are not to be discharged]]" to correct an error.