Section 355.9-622 - Effect of acceptance of collateral(1) A secured party's acceptance of collateral in full or partial satisfaction of the obligation it secures:(a) Discharges the obligation to the extent consented to by the debtor;(b) Transfers to the secured party all of a debtor's rights in the collateral;(c) 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(d) Terminates any other subordinate interest.(2) A subordinate interest is discharged or terminated under subsection (1) of this section, even if the secured party fails to comply with this article.Effective:7/1/2001
Created 2000, Ky. Acts ch. 408, sec. 140, effective7/1/2001.