Legislation

Section 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.