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New Jersey Statutes Title 12A. Commercial Transactions 12A § 9-617

Current as of February 19, 2021 | Updated by FindLaw Staff

 (a) Effects of disposition.  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) Rights of good-faith transferee.  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) Rights of other transferee.  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 - New Jersey Statutes Title 12A. Commercial Transactions 12A § 9-617 - last updated February 19, 2021 | https://codes.findlaw.com/nj/title-12a-commercial-transactions/nj-st-sect-12a-9-617/

Read this complete New Jersey Statutes Title 12A. Commercial Transactions 12A § 9-617 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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