(a) Effect of acceptance. 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) Discharge of subordinate interest notwithstanding noncompliance. A subordinate interest is discharged or terminated under subsection (a) of this Code section, even if the secured party fails to comply with this article.
Section: Previous 11-9-611 11-9-612 11-9-613 11-9-614 11-9-615 11-9-616 11-9-617 11-9-618 11-9-619 11-9-620 11-9-621 11-9-622 11-9-623 11-9-624 NextLast modified: October 14, 2016