Welcome to FindLaw's Cases & Codes, a free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw's Learn About the Law.
1. A secured party's disposition of collateral after default:
a. Transfers to a transferee for value all of the debtor's rights in the collateral;
b. Discharges the security interest under which the disposition is made; and
c. Discharges any subordinate security interest or other subordinate lien.
2. A transferee that acts in good faith takes free of the rights and interests described in subsection 1, even if the secured party fails to comply with this chapter or the requirements of any judicial proceeding.
3. If a transferee does not take free of the rights and interests described in subsection 1, the transferee takes the collateral subject to:
a. The debtor's rights in the collateral;
b. The security interest or agricultural lien under which the disposition is made; and
c. Any other security interest or other lien.
Cite this article: FindLaw.com - North Dakota Century Code Title 41. Uniform Commercial Code § 41-09-112. (9-617) Rights of transferee of collateral - last updated January 01, 2020 | https://codes.findlaw.com/nd/title-41-uniform-commercial-code/nd-cent-code-sect-41-09-112/
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.