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 chapter.History.—s. 7, ch. 2001-198.