400.9-622. Effect of acceptance of collateral.
Effect of acceptance of collateral.
400.9-622. (a) A secured party's acceptance of collateral in full orpartial satisfaction of the obligation it secures:
(1) Discharges the obligation to the extent consented to by thedebtor;
(2) Transfers to the secured party all of a debtor's rights in thecollateral;
(3) Discharges the security interest or agricultural lien that is thesubject of the debtor's consent and any subordinate security interest orother subordinate lien; and
(4) Terminates any other subordinate interest.
(b) A subordinate interest is discharged or terminated undersubsection (a), even if the secured party fails to comply with thisarticle.
(L. 2001 S.B. 288)Effective 7-01-01