Document ID: chunk:federal_register_of_legislation:C2024C00719:section:133
Version: federal_register_of_legislation:C2024C00719
Segment Type: section
Provision Reference: s 133
Character Range: 238876–239811

133  Disposing of collateral free of interests
 (1) If collateral has been disposed of under section 128 (including by a secured party purchasing the collateral), a person takes the collateral as a result of the disposal free of all of the following interests in the collateral:
 (a) the interest of the grantor;
 (b) the security interest of the secured party who disposed of the collateral;
 (c) all security interests in the collateral that have a lower priority than the security interest of that secured party.
Note: If a person has a perfected security interest in the collateral that ranks higher than that of the secured party, the person retains a security interest in the collateral.
 (2) Subsection (1) applies in relation to a disposal of collateral (other than a disposal by a secured party purchasing the collateral) even if the requirements of this Chapter have not been complied with.

Division 4—Retaining collateral