{"data":{"id":"us-nj/n.j.-stat.-12a-9-617","jurisdiction":"us-nj","citation":"N.J. Stat. § 12A:9-617","heading":"Rights of transferee of collateral.","body":"Rights of Transferee of Collateral.\n(a)\tEffects of disposition.  A secured party's disposition of collateral after default:\n(1)\ttransfers to a transferee for value all of the debtor's rights in the collateral;\n(2)\tdischarges the security interest under which the disposition is made; and\n(3)\tdischarges any subordinate security interest or other subordinate lien.\n(b)\tRights 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 chapter or the requirements of any judicial proceeding.\n(c)\tRights 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:\n(1)\tthe debtor's rights in the collateral;\n(2)\tthe security interest or agricultural lien under which the disposition is made; and\n(3)\tany other security interest or other lien.\nL.2001, c.117, s.1; amended 2001, c.386, s.106.","path":["TITLE 12A COMMERCIAL TRANSACTIONS"],"source_url":"https://pub.njleg.state.nj.us/statutes/STATUTES-TEXT.zip","current_through":"P.L.2025, c.405, and J.R.22","vintage":"","retrieved_at":"2026-08-27T17:54:13Z","sha256":"e04c64081fb721694ff83d3dc341cbf5d52ba839dc27fbbb66c4752fab272465","source_id":"us-nj","stale":true,"prev":"us-nj/n.j.-stat.-12a-9-616","next":"us-nj/n.j.-stat.-12a-9-618"},"notice":"GroundRules: Original legal text. Not legal advice."}