12A:9-622. Effect of Acceptance of Collateral.

   (a)   Effect of acceptance. 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)   Discharge of subordinate interest notwithstanding noncompliance. A subordinate interest is discharged or terminated under subsection (a), even if the secured party fails to comply with this chapter.

   L.2001, c.117, s.1; amended 2001, c.386, s.111.