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District of Columbia Code Division V. Local Business Affairs § 28:9-617. Rights of transferee of collateral.

Current as of January 01, 2020 | Updated by FindLaw Staff

(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 other than liens created under D.C. Official Code § 47-2011 for gross sales taxes, and D.C. Official Code § 47-1812.09 for income and franchise taxes.

(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.

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Cite this article: FindLaw.com - District of Columbia Code Division V. Local Business Affairs § 28:9-617. Rights of transferee of collateral. - last updated January 01, 2020 | https://codes.findlaw.com/dc/division-v-local-business-affairs/dc-code-sect-28-9-617.html

Read this complete District of Columbia Code Division V. Local Business Affairs § 28:9-617. Rights of transferee of collateral. on Westlaw

FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.

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