§490:9-622 Effect of acceptance of collateral. (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 article. [L 2000, c 241, pt of §1]
Section: Previous 490-9-615 490-9-616 490-9-617 490-9-618 490-9-619 490-9-620 490-9-621 490-9-622 490-9-623 490-9-624 490-9-625 490-9-626 490-9-627 490-9-628 490-9-701 NextLast modified: October 27, 2016