(1) The payment of the proceeds of sale and disposal shall be made in the following order:
(a) The reasonable expenses of retaking, holding, preparing for disposal and disposing of the collateral, including reasonable fees paid to legal practitioner and legal expenses incurred by the security holder;
(b) Debt secured by the security interest;
(c) Debt secured by any subordinate security interest in the collateral if a written demand is received before the completion of the distribution of the proceeds and the holder of a subordinate security interest gives reasonable evidence of the interest.
(2) The security holder shall account to the security giver for any surplus of the proceeds of sale of collateral and, unless otherwise agreed, the security giver shall be liable for any deficiency.
(3) While disposing of collateral by a security holder after default in performance of obligation, the following provisions shall be followed:
(a) On the sale and disposal of collateral, the buyer who pays value in good faith shall acquire all rights in the collateral, the security interest or any subordinate security interest or the collateral without privilege; and
(b) If, while issuing a new ownership certificate to the purchaser for value, the office maintaining records of ownership of the collateral so requests, the security holder shall submit to such office the authorization for the issuance of the new ownership certificate in the form of the order issued by the Court granting possession to the security holder or the written agreement of the security giver to surrender possession to the security holder in the
event of default in the performance of obligation.