§490:9-622  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. [L 2000, c 241, pt of §1]