400.9-617. Rights of transferee of collateral. - Missouri Statutes

Rights of transferee of collateral.

400.9-617. (a) A secured party's disposition of collateral afterdefault:

(1) Transfers to a transferee for value all of the debtor's rights inthe collateral;

(2) Discharges the security interest under which the disposition ismade; and

(3) Discharges any subordinate security interest or other subordinatelien.

(b) A transferee that acts in good faith takes free of the rights andinterests described in subsection (a), even if the secured party fails tocomply with this article or the requirements of any judicial proceeding.

(c) If a transferee does not take free of the rights and interestsdescribed in subsection (a), the transferee takes the collateral subjectto:

(1) The debtor's rights in the collateral;

(2) The security interest or agricultural lien under which thedisposition is made; and

(3) Any other security interest or other lien.

(L. 2001 S.B. 288)

Effective 7-01-01