§ 25-9-622. Effect of acceptance of collateral.
§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)Â Â Â Â Â Â Â Discharges theobligation to the extent consented to by the debtor;
(2)Â Â Â Â Â Â Â Transfers to thesecured party all of a debtor's rights in the collateral;
(3)Â Â Â Â Â Â Â 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)Â Â Â Â Â Â Â 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.)