Commonwealth Consolidated Acts Commonwealth Consolidated Acts(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.