(a) Effects of disposition. A secured party’s disposition of collat-
eral 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 subordi-
nate lien.
(b) Rights of good faith transferee.
A transferee that acts in
good faith takes free of the rights and interests described in subsection (a) of this Code section, 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) of this Code section, 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.