Title 70A Chapter 9a Section 622

Uniform Commercial Code
Uniform Commercial Code - Secured Transactions
Section 622
Effect of acceptance of collateral.

            

70A-9a-622.   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 subordinate lien; and

            (d) terminates any other subordinate interest.

            (2) A subordinate interest is discharged or terminated under Subsection (1), even if the secured party fails to comply with this title.


Enacted by Chapter 252, 2000 General Session