California Commercial Code 9617 – (a) A secured party’s disposition of collateral after default …
(a) A secured party’s disposition of collateral after default does all of the following:
(1) Transfers to a transferee for value all of the debtor’s rights in the collateral.
Terms Used In California Commercial Code 9617
- Lien: A claim against real or personal property in satisfaction of a debt.
- Security interest: includes any interest of a consignor and a buyer of accounts, chattel paper, a payment intangible, or a promissory note in a transaction that is subject to Division 9 (commencing with Section 9101). See California Commercial Code 1201
(2) Discharges the security interest under which the disposition is made.
(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 subdivision (a), even if the secured party fails to comply with this division or the requirements of any judicial proceeding.
(c) If a transferee does not take free of the rights and interests described in subdivision (a), the transferee takes the collateral subject to all of the following:
(1) The debtor’s rights in the collateral.
(2) The security interest or agricultural lien under which the disposition is made.
(3) Any other security interest or other lien.
(Added by Stats. 1999, Ch. 991, Sec. 35. Effective January 1, 2000. Operative July 1, 2001, by Sec. 75 of Ch. 991 and Section 9701.)