Com. Code, § 9617 · Chapter 6. Default
Com. Code, § 9617
Text — As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
(a) A secured party’s disposition of collateral after default does all of the following:
(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.
(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 subdivision (a), even if the secured party fails to comply with this division or the requirements of any judicial proceeding.
(c) If a transferee does not take free of the rights and interests described in subdivision (a), the transferee takes the collateral subject to all of the following:
(1) The debtor’s rights in the collateral.
(2) The security interest or agricultural lien under which the disposition is made.
(3) Any other security interest or other lien.
Notes and commentary — not statutory text
History
Added by Stats. 1999, Ch. 991, Sec. 35. Effective January 1, 2000. Operative July 1, 2001, by Sec. 75 of Ch. 991 and Section 9701.
Source of truth
- Edition
- As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
- Official file
- https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=COM§ionNum=9617.
- Text hash
- sha256 04aa40081e97de47407354b3bbc719a0a6cbe2e9ad45a2dc6daca66867d87279
- Composed by
- compose_ca.py 2026-10-22: the Legislative Counsel's CAML content files read by a tokenizer (caml_readers.reader_a); an independent xml.etree reading (caml_readers.reader_b) agrees on every section
Cited by 5 provisions
Provisions in this library whose text cites Com. Code, § 9617. Each shows the citation as that text prints it.
Code of Civil Procedure
- Code Civ. Proc., § 697.610Printed as Sections 9617 and 9622 of the Commercial Code
- Code Civ. Proc., § 697.740Printed as Sections 9617 and 9622 of the Commercial Code
- Code Civ. Proc., § 697.750Printed as Section 9617 of the Commercial Code
- Code Civ. Proc., § 697.920Printed as Section 9617 of the Commercial Code
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.