(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 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.
Structure Code of Alabama
Article 9A - Secured Transactions.
Division 1 - Default and Enforcement of Security Interest.
Section 7-9A-602 - Waiver and Variance of Rights and Duties.
Section 7-9A-603 - Agreement on Standards Concerning Rights and Duties.
Section 7-9A-604 - Procedure if Security Agreement Covers Real Property or Fixtures.
Section 7-9A-605 - Unknown Debtor or Secondary Obligor.
Section 7-9A-606 - Time of Default for Agricultural Lien.
Section 7-9A-607 - Collection and Enforcement by Secured Party.
Section 7-9A-609 - Secured Party's Right to Take Possession After Default.
Section 7-9A-610 - Disposition of Collateral After Default.
Section 7-9A-611 - Notification Before Disposition of Collateral.
Section 7-9A-612 - Timeliness of Notification Before Disposition of Collateral.
Section 7-9A-613 - Contents and Form of Notification Before Disposition of Collateral: General.
Section 7-9A-616 - Explanation of Calculation of Surplus or Deficiency.
Section 7-9A-617 - Rights of Transferee of Collateral.
Section 7-9A-618 - Rights and Duties of Certain Secondary Obligors.
Section 7-9A-619 - Transfer of Record or Legal Title.
Section 7-9A-621 - Notification of Proposal to Accept Collateral.
Section 7-9A-622 - Effect of Acceptance of Collateral.