Effect of acceptance of collateral

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    (a)    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.

    (b)    A subordinate interest is discharged or terminated under subsection (a), even if the secured party fails to comply with this title.


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