Title 11, Chapter 9, Section 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
(1) Discharges the obligation to the extent consented to by the
(2) Transfers to the secured party all of a debtor's rights in the
(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) of this Code section, even if the secured party fails
to comply with this article.