Section 9--617. Rights of Transferee of Collateral.

(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.