30-9-622. (Effective July 1, 2001) Effect of acceptance of collateral. (1) A secured party's acceptance of collateral in full or partial satisfaction of the obligation it secures:
     (a) discharges the obligation to the extent consented to by the debtor;
     (b) transfers to the secured party all of a debtor's rights in the collateral;
     (c) discharges the security interest or agricultural lien that is the subject of the debtor's consent and any subordinate security interest or other lien; and
     (d) terminates any other subordinate interest.
     (2) A subordinate interest is discharged or terminated under subsection (1) whether or not the secured party is required to send or does send its proposal to the holder of the interest. However, any person to which the secured party was required to send, but did not send, its proposal has the remedy provided by 30-9-625(2).

     History: En. Sec. 119, Ch. 305, L. 1999.