(A) 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 other than the liens specified in division (D) of section 1309.109 of the Revised Code.

(C) If a transferee does not take free of the rights and interests described in division (A) of this section, 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.