(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
(b. A subordinate interest is discharged or terminated under subsection (a), even if the secured party fails to comply with this title.
History
2000, c. 1007.
