State Codes and Statutes

Statutes > Connecticut > Title42a > Art009 > Sec42a-9-622

      Sec. 42a-9-622. 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), even if the secured party fails to comply with this article.

      (P.A. 01-132, S. 119.)