8.9A-617 - A-617. Rights of transferee of collateral. - Virginia Statutes

§ 8.9A-617. Rights of transferee of collateral.

(a) Effects of disposition. A secured party's disposition of collateral afterdefault:

(1) transfers to a transferee for value all of the debtor's rights in thecollateral;

(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 faithtakes free of the rights and interests described in subsection (a), even ifthe secured party fails to comply with this title or the requirements of anyjudicial proceeding.

(c) Rights of other transferee. If a transferee does not take free of therights and interests described in subsection (a), the transferee takes thecollateral subject to:

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

(2) the security interest or agricultural lien under which the disposition ismade; and

(3) any other security interest or other lien.

(1964, c. 219, § 8.9-504; 1973, c. 509; 2000, c. 1007.)