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Texas Business & Commerce Code

§ 9.617 — RIGHTS OF TRANSFEREE OF COLLATERAL

BC § 9.617Title 1. UNIFORM COMMERCIAL CODE · Ch. 9. SECURED TRANSACTIONS · Art. F. DEFAULT

Statute text

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(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:

Legislative history

Added by Acts 1999, 76th Leg., ch. 414, Sec. 1.01, eff. July 1, 2001.

Source: Texas Business & Commerce Code § 9.617 from the Texas Constitution and Statutes (Texas Legislature) (public record). DecisionDepot is for informational use only and is not legal advice — verify against the official source before relying on this text.