N.Y. Uniform Commercial Code 9-617 – Rights of Transferee of Collateral
Section 9–617. Rights of Transferee of Collateral.
Terms Used In N.Y. Uniform Commercial Code 9-617
- Lien: A claim against real or personal property in satisfaction of a debt.
(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 other than liens created under any law of
this state that are not to be discharged.
(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 article 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.