Sec. 9617.
(1) A secured party's disposition of collateral after default does all of the following:
(a) Transfers to a transferee for value all of the debtor's rights in the collateral.
(b) Discharges the security interest under which the disposition is made.
(c) Discharges any subordinate security interest or other subordinate lien.
(2) A transferee that acts in good faith takes free of the rights and interests described in subsection (1), even if the secured party fails to comply with this article or the requirements of any judicial proceeding.
(3) If a transferee does not take free of the rights and interests described in subsection (1), the transferee takes the collateral subject to all of the following:
(a) The debtor's rights in the collateral.
(b) The security interest or agricultural lien under which the disposition is made.
(c) Any other security interest or other lien.
History: Add. 2000, Act 348, Eff. July 1, 2001
Structure Michigan Compiled Laws
Chapter 440 - Uniform Commercial Code
Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102)
Article 9 - Secured Transactions (440.9101...440.9994)
174-1962-9-6 - Part 6 Default (440.9601...440.9628)
174-1962-9-6-1. - Subpart 1. Default and Enforcement of Security Interest (440.9601...440.9624)
Section 440.9602 - Waiver and Variance of Rights and Duties.
Section 440.9603 - Agreement on Standards Concerning Rights and Duties.
Section 440.9604 - Procedure if Security Agreement Covers Real Property or Fixtures.
Section 440.9605 - Unknown Debtor or Secondary Obligor.
Section 440.9606 - Time of Default for Agricultural Lien.
Section 440.9607 - Collection and Enforcement by Secured Party.
Section 440.9609 - Secured Party's Right to Take Possession After Default.
Section 440.9610 - Disposition of Collateral After Default.
Section 440.9611 - Notification Before Disposition of Collateral.
Section 440.9612 - Timeliness of Notification Before Disposition of Collateral.
Section 440.9613 - Contents and Form of Notification Before Disposition of Collateral; Generally.
Section 440.9616 - Explanation of Calculation of Surplus or Deficiency.
Section 440.9617 - Rights of Transferee of Collateral.
Section 440.9618 - Rights and Duties of Certain Secondary Obligors.
Section 440.9619 - Transfer of Record or Legal Title.
Section 440.9621 - Notification of Proposal to Accept Collateral.
Section 440.9622 - Effect of Acceptance of Collateral.