Illinois Compiled Statutes 810 ILCS 5 Uniform Commercial Code. Section 9-622

    (810 ILCS 5/9-622)

    Sec. 9-622. Effect of acceptance of collateral.

    (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), even if the secured party fails to comply with this Article.

(Source: P.A. 91-893, eff. 7-1-01.)

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Last modified: February 18, 2015