30-9A-617. Rights of transferee of collateral. (1) A secured party's disposition of collateral after default:
(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; and
(c) discharges any subordinate security interest or other 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 the requirements of this chapter or any judicial proceedings.
(3) If a transferee does not take free of the rights and interests described in subsection (1), the transferee takes the collateral subject to:
(a) the debtor's rights in the collateral;
(b) the security interest or agricultural lien under which the disposition is made; and
(c) any security interest or other lien.
History: En. Sec. 114, Ch. 305, L. 1999; Sec. 30-9-617, MCA 1999; redes. 30-9A-617 by Code Commissioner, 2001.
Structure Montana Code Annotated
Chapter 9A. Uniform Commercial Code Secured Transactions
30-9A-602. Waiver and variance of rights and duties
30-9A-603. Agreement on standards concerning rights and duties
30-9A-604. Procedure if security agreement covers real property or fixtures
30-9A-605. Unknown debtor or secondary obligor
30-9A-606. Time of default for agricultural lien
30-9A-607. Collection and enforcement by secured party
30-9A-609. Secured party's right to take possession after default
30-9A-610. Disposition of collateral after default
30-9A-611. Notification before disposition of collateral
30-9A-612. Timeliness of notification before disposition of collateral
30-9A-613. Contents and form of notification before disposition of collateral -- general
30-9A-615. Application of proceeds of disposition -- liability for deficiency and right to surplus
30-9A-616. Explanation of calculation of surplus or deficiency
30-9A-617. Rights of transferee of collateral
30-9A-618. Rights and duties of certain secondary obligors
30-9A-619. Transfer of record or legal title
30-9A-621. Notification of proposal to accept collateral
30-9A-622. Effect of acceptance of collateral
30-9A-623. Right to redeem collateral
30-9A-625. Remedies for secured party's failure to comply with chapter
30-9A-626. Action in which deficiency or surplus is in issue
30-9A-627. Determination of whether conduct was commercially reasonable