946                               LAWS OF MARYLAND                        [CH. 538

(3) Disposition of the collateral may be by public or private pro-
ceedings and may be made by way of one or more contracts. Sale
or other disposition may be as a unit or in parcels and at any time
and place and on any terms but every aspect of the disposition in-
cluding the method, manner, time, place and terms must be commer-
cially reasonable. Unless collateral is perishable or threatens to de-
cline speedily in value or is of a type customarily sold on a recog-
nized, market reasonable notification of the time and place of any
public sale or reasonable notification of the time after which any
private sale or other intended disposition is to be made shall be sent
by the secured party to the debtor, and except in the case of con-
sumer goods to any other person who has a security interest in the
collateral and who has duly filed a financing statement indexed in
the name of the debtor in this state or who is known by the secured
party to have a security interest in the collateral. The secured party
may buy at any public sale and if the collateral is of a type customarily
sold in a recognized market or is of a type which is the subject of
widely distributed standard price quotations he may buy at private
sale.

(4) When collateral is disposed of by a secured party after de-
fault, the disposition transfers to a purchaser for value all of the
debtor's rights therein, discharges the security interest under which
it is made and any security interest or lien subordinate thereto. The
purchaser takes free of all such rights and interests even though the
secured party fails to comply with the requirements of this Part
or of any judicial proceedings.

(a)  in the case of a public sale, if the purchaser has no knowledge
of any defects in the sale and if he does not buy in collusion with the
secured party, other bidders or the person conducting the sale; or

(b)  in any other case, if the purchaser acts in good faith.

(5) A person who is liable to a secured party under a guaranty,
indorsement, repurchase agreement or the like and who receives a
transfer of collateral from the secured party or is subrogated to his
rights has thereafter the rights and duties of the secured party.
Such a transfer of collateral is not a sale or disposition of the col-
lateral under this Sub-title.

9—505. Compulsory Disposition of Collateral; Acceptance of the
Collateral as Discharge of Obligation.—

(1)  If the debtor has paid sixty per cent of the cash price in the
case of a purchase money security interest in consumer goods or
sixty per cent of the loan in the case of another security interest
in consumer goods, and has not signed after default a statement re-
nouncing or modifying his rights under this Part a secured party
who has taken possession of collateral must dispose of it under
Section 9—504 and if he fails to do so within ninety days after he
takes possession the debtor at his option may recover in conversion
or under Section 9—507 (1) on secured party's liability.

(2)  In any other case involving consumer goods or any other col-
lateral a secured party in possession may, after default, propose to
retain the collateral in satisfaction of the obligation. Written notice
of such proposal shall be sent to the debtor and except in the case of