(a) A secured party's acceptance of collateral in full or partial satisfaction of the obligation it secures
(1) discharges the obligation to the extent consented to by the debtor;
(2) transfers to the secured party all of a debtor's rights in the collateral;
(3) discharges the security interest or agricultural lien that is the subject of the debtor's consent and any subordinate security interest or other subordinate lien; and
(4) terminates any other subordinate interest.
(b) A subordinate interest is discharged or terminated under (a) of this section, even if the secured party fails to comply with this chapter.
Section: Previous 45.29.615 45.29.616 45.29.617 45.29.618 45.29.619 45.29.620 45.29.621 45.29.622 45.29.623 45.29.624 45.29.625 45.29.626 45.29.627 45.29.628 NextLast modified: November 15, 2016