Effect of Acceptance of Collateral

1. Law
2. Georgia Code
3. Commercial Code
4. Secured Transactions
5. Default
6. 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:
   1. Discharges the obligation to the extent consented to by the debtor;
   2. Transfers to the secured party all of a debtor's rights in the collateral;
   3. 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
   4. Terminates any other subordinate interest.
2. Discharge of subordinate interest notwithstanding noncompliance. A subordinate interest is discharged or terminated under subsection (a) of this Code section, even if the secured party fails to comply with this article.

(Code 1981, §11-9-622, enacted by Ga. L. 2001, p. 362, § 1.)

RESEARCH REFERENCES

Am. Jur. 2d.

- 68A Am. Jur. 2d, Secured Transactions, §§ 704-729, 758.

C.J.S.

- 72 C.J.S., Pledges, §§ 49, 50.

U.L.A.

- Uniform Commercial Code (U.L.A.) § 9-622.

ALR.

- Construction and operation of UCC § 9-505(2) authorizing secured party in possession of collateral to retain it in satisfaction of obligation, 55 A.L.R.3d 651.

Uniform Commercial Code: failure of secured creditor to give required notice of disposition of collateral as bar to deficiency judgment, 59 A.L.R.3d 401.

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