(a) Effects of disposition. A secured party's disposition of collateral after default:

1. (1) transfers to a transferee for value all of the debtor's rights in the collateral;
2. (2) discharges the security interest under which the disposition is made; and
3. (3) discharges any subordinate security interest or other subordinate lien.

(c) Rights of other transferee. If a transferee does not take free of the rights and interests described in subsection (a), the transferee takes the collateral subject to:

1. (1) the debtor's rights in the collateral;
2. (2) the security interest or agricultural lien under which the disposition is made; and
3. (3) any other security interest or other lien.