Section 409.617. Rights of transferee of collateral.

 

(1)   Effects of disposition. 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 subordinate lien.

(2)   Rights of good-faith transferee. A transferee that acts in good faith takes free of the rights and interests described in sub. (1) , even if the secured party fails to comply with this chapter or the requirements of any judicial proceeding.

(3)   Rights of other transferee. If a transferee does not take free of the rights and interests described in sub. (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 other security interest or other lien.

2001 a. 10 ; 2003 a. 63 .