Section 9--617. Rights of Transferee of Collateral

(a) Effects   of   disposition.   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  other  than liens created under any law of
             this state that are not to be discharged.
    (b) Rights of good-faith transferee. 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 article or  the
  requirements of any judicial proceeding.
    (c) Rights  of other transferee. 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.