MARVIN MANDEL, Governor

299

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 consumer 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 default, 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] SUBTITLE 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 collateral under this [subtitle]
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
renouncing or modifying his rights under this [part]
SUBTITLE a secured party who has taken possession of
collateral must dispose of it under § 9—504 and if he
fails to do so within ninety days after he takes