47-9622. Effect of acceptance of
collateral


A. 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. A subordinate interest is discharged or terminated under subsection A of this
section, even if the secured party fails to comply with this chapter.