Arizona Laws 47-9617. Rights of transferee of collateral
A. A secured party‘s disposition of collateral after default:
Terms Used In Arizona Laws 47-9617
- Agricultural lien: means an interest, other than a security interest, in farm products:
(a) That secures payment or performance of an obligation for:
(i) Goods or services furnished in connection with a debtor's farming operation; or
(ii) Rent on real property leased by a debtor in connection with its farming operation;
(b) That is created by statute in favor of a person that:
(i) In the ordinary course of its business furnished goods or services to a debtor in connection with a debtor's farming operation; or
(ii) Leased real property to a debtor in connection with the debtor's farming operation; and
(c) Whose effectiveness does not depend on the person's possession of the personal property. See Arizona Laws 47-9102
- Collateral: means the property subject to a security interest or agricultural lien. See Arizona Laws 47-9102
- Debtor: means :
(a) A person having an interest, other than a security interest or other lien, in the collateral, whether or not the person is an obligor;
(b) A seller of accounts, chattel paper, payment intangibles or promissory notes; or
(c) A consignee. See Arizona Laws 47-9102
- Good faith: means honesty in fact and the observance of reasonable commercial standards of fair dealing. See Arizona Laws 47-9102
- Lien: A claim against real or personal property in satisfaction of a debt.
- Secured party: means :
(a) A person in whose favor a security interest is created or provided for under a security agreement, whether or not any obligation to be secured is outstanding;
(b) A person that holds an agricultural lien;
(c) A consignor;
(d) A person to which accounts, chattel paper, payment intangibles or promissory notes have been sold;
(e) A trustee, indenture trustee, agent, collateral agent or other representative in whose favor a security interest or agricultural lien is created or provided for; or
(f) A person that holds a security interest arising under section 47-2401, 47-2505, 47-2711, 47-2A508, 47-4210 or 47-5118. See Arizona Laws 47-9102
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.