5. Disposition by Junior Secured Party. Disposition rights under subsection (a) [Maine cite subsection (1)] are not limited to first-priority security interests. Rather, any secured party as to whom there has been a default enjoys the right to dispose of collateral under this subsection. The exercise of this right by a secured party whose security interest is subordinate to that of another secured party does not of itself constitute a conversion or otherwise give rise to liability in favor of the holder of the senior security interest. Section 9-615 [Maine cite section 9-1615] addresses application of the proceeds of a disposition by a junior secured party. Under Section 9-615(a) [Maine cite section 9-1615, subsection (1)], a junior secured party owes no obligation to apply the proceeds of disposition to the satisfaction of obligations secured by a senior security interest. Section 9-615(g) [Maine cite section 9-1615, subsection (7)] builds on this general rule by protecting certain juniors from claims of a senior concerning cash proceeds of the disposition. Even if a senior were to have a non-Article 9 claim to proceeds of a junior's disposition, Section 9-615(g) [Maine cite section 9-1615, subsection (7)] would protect a junior that acts in good faith and without knowledge that its actions violate the rights of a senior party. Because the disposition by a junior would not cut off a senior's security interest or other lien (see Section 9-617 [Maine cite section 9-1617]), in many (probably most) cases the junior's receipt of the cash proceeds would not violate the rights of the senior.

The holder of a senior security interest is entitled, by virtue of its priority, to take possession of collateral from the junior secured party and conduct its own disposition, provided that the senior enjoys the right to take possession of the collateral from the debtor. See Section 9-609 [Maine cite section 9-1609]. The holder of a junior security interest normally must notify the senior secured party of an impending disposition. See Section 9-611 [Maine cite section 9-1611]. Regardless of whether the senior receives a notification from the junior, the junior's disposition does not of itself discharge the senior's security interest. See Section 9-617 [Maine cite section 9-1617]. Unless the senior secured party has authorized the disposition free and clear of its security interest, the senior's security interest ordinarily will survive the disposition by the junior and continue under Section 9-315(a) [Maine cite section 9-1315, subsection (1)]. If the senior