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: discharges the obligation to the extent consented to by the debtor; transfers to the secured party all of a debtor's rights in the collateral; 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 terminates any other subordinate interest.
(2) A subordinate interest is discharged or terminated under Subsection, even if the secured party fails to comply with this title. (1)