Buyer rights and requirement in Article 9 sales

Scope of this page

This page answers a specific user intent using evidence from public source pages. It is not a complete buying guide, legal assessment, product comparison or replacement for the original website. Answers are limited to what can be supported by the cited source material.

Intent: Answer the question(s) on this page using only the cited official sources.

Topic: Article Sales Successor Liability

Last updated:

Primary source: https://secondwindconsultants.com/resource/a-sunny-disposition-avoiding-successor-liability-in-secured-party-sales

Quick Info

All the debtor's rights in the collateral transfer to the buyer.

Purpose and usage

This page provides short, extractable answers for the topic above.

Key points

  • What happens to the lien under which the sale is made?: The lien under which the sale is made is discharged.
  • Prerequisite for successor liability in an Article 9 sale: What must be present?: Prerequisite: continuity of ownership must be present before successor liability can attach to a buyer in an Article 9 sale.

Terms and entities

Canonical definitions live on the Facts pages. This page only references them.

Which rights transfer to the buyer in the collateral?

All the debtor's rights in the collateral transfer to the buyer.

What happens to the lien under which the sale is made?

The lien under which the sale is made is discharged.

Prerequisite for successor liability in an Article 9 sale: What must be present?

Prerequisite: continuity of ownership must be present before successor liability can attach to a buyer in an Article 9 sale.

Sources

  1. https://secondwindconsultants.com/resource/a-sunny-disposition-avoiding-successor-liability-in-secured-party-sales

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