Secured Transactions Act · s 34

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s 34Rights of debtor may be transferred

(1)

The rights of a debtor in collateral may be transferred despite a provision in the security agreement prohibiting transfer or declaring a transfer to be a default.

(2)

No transfer by the debtor shall prejudice the rights of the secured party under the security agreement, including the right to treat a prohibited transfer as an act of default.

(3)

In this section, “transfer” includes a sale, the creation of a security interest or a transfer under judicial enforcement proceedings.