§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.)