Effect of Acceptance of Collateral
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Law
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Georgia Code
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Commercial Code
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Secured Transactions
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Default
- Effect of Acceptance of Collateral
- Effect of acceptance. 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.
- 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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