State Codes and Statutes
Statutes > North-carolina > Chapter_25 > GS_25-9-622§25‑9‑622. Effect of acceptance of collateral.
(a) Effect ofacceptance. A secured party's acceptance of collateral in full or partialsatisfaction of the obligation it secures:
(1) Discharges theobligation to the extent consented to by the debtor;
(2) Transfers to thesecured party all of a debtor's rights in the collateral;
(3) Discharges thesecurity interest or agricultural lien that is the subject of the debtor'sconsent and any subordinate security interest or other subordinate lien; and
(4) Terminates any othersubordinate interest.
(b) Discharge ofsubordinate interest notwithstanding noncompliance. A subordinate interest isdischarged or terminated under subsection (a) of this section, even if thesecured party fails to comply with this Article. (2000‑169, s. 1.)
