(a) 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'sconsent and any subordinate security interest or other subordinate lien; and
Terminates any other subordinate interest.
(b) A subordinate interest is discharged or terminated under subsection (a) of this section, even if the secured party fails to comply with this article.
Source: L. 2001: Entire article R&RE, p. 1416, § 1, effective July 1.