Effect of acceptance of collateral.

1. Effect of acceptance. 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. Discharge of subordinate interest notwithstanding noncompliance. A subordinate interest is discharged or terminated under subsection 1 , even if the secured party fails to comply with this Article . 2000 Acts, ch 1149, §120, 187 Referred to in §554.9102 , 554.9602 , 554.9623