Section 26-1-9.1-617 - Rights of transferee of collateral(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 IC 26-1-9.1 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: (1) the debtor's rights in the collateral;(2) the security interest or agricultural lien under which the disposition is made; and(3) any security interest or other lien.As added by P.L. 57-2000, SEC.45.