Effective: July 1, 2001
Latest Legislation: Senate Bill 74 - 124th General Assembly
(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 division (A) of this section even if the secured party fails to comply with this chapter.