§ 8.9A-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 title.
(2000, c. 1007.)
Sections: Previous 8.9A-614 8.9A-615 8.9A-616 8.9A-617 8.9A-618 8.9A-619 8.9A-620 8.9A-621 8.9A-622 8.9A-623 8.9A-624 8.9A-625 8.9A-626 8.9A-627 8.9A-628 NextLast modified: April 3, 2009