Sec. 9.617. RIGHTS OF TRANSFEREE OF COLLATERAL. (a) 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) 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 chapter or the requirements of any judicial proceeding.
(c) 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.
Added by Acts 1999, 76th Leg., ch. 414, Sec. 1.01, eff. July 1, 2001.
Structure Texas Statutes
Title 1 - Uniform Commercial Code
Chapter 9 - Secured Transactions
Section 9.602. Waiver and Variance of Rights and Duties
Section 9.603. Agreement on Standards Concerning Rights and Duties
Section 9.604. Procedure if Security Agreement Covers Real Property or Fixtures
Section 9.605. Unknown Debtor or Secondary Obligor
Section 9.606. Time of Default for Agricultural Lien
Section 9.607. Collection and Enforcement by Secured Party
Section 9.609. Secured Party's Right to Take Possession After Default
Section 9.610. Disposition of Collateral After Default
Section 9.611. Notification Before Disposition of Collateral
Section 9.612. Timeliness of Notification Before Disposition of Collateral
Section 9.613. Contents and Form of Notification Before Disposition of Collateral: General
Section 9.615. Application of Proceeds of Disposition; Liability for Deficiency and Right to Surplus
Section 9.616. Explanation of Calculation of Surplus or Deficiency
Section 9.617. Rights of Transferee of Collateral
Section 9.618. Rights and Duties of Certain Secondary Obligors
Section 9.619. Transfer of Record or Legal Title
Section 9.621. Notification of Proposal to Accept Collateral
Section 9.622. Effect of Acceptance of Collateral
Section 9.623. Right to Redeem Collateral
Section 9.625. Remedies for Secured Party's Failure to Comply With Chapter
Section 9.626. Action in Which Deficiency or Surplus Is in Issue
Section 9.627. Determination of Whether Conduct Was Commercially Reasonable