§ 6A-9-622 - Effect of acceptance of collateral.
SECTION 6A-9-622
§ 6A-9-622 Effect of acceptance ofcollateral. – (a) Effect of acceptance. A secured party's acceptance of collateral infull or partial satisfaction of the obligation it secures:
(1) Discharges the obligation to the extent consented to bythe debtor;
(2) Transfers to the secured party all of a debtor's rightsin the collateral;
(3) Discharges the security interest or agricultural lienthat is the subject of the debtor's consent and any subordinate securityinterest or other subordinate lien; and
(4) Terminates any other subordinate interest.
(b) Discharge of subordinate interest notwithstandingnoncompliance. A subordinate interest is discharged or terminated undersubsection (a), even if the secured party fails to comply with this chapter.