(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 subsection (a), even if the secured party fails to comply with this chapter.
Section: Previous 4-9-611 4-9-612 4-9-613 4-9-614 4-9-615 4-9-616 4-9-617 4-9-618 4-9-619 4-9-620 4-9-621 4-9-622 4-9-623 4-9-624 NextLast modified: November 15, 2016