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2018 Code of Alabama
Title 7 - COMMERCIAL CODE.
Article 9A - SECURED TRANSACTIONS.
Part 6 - DEFAULT.
Division 1 - Default and Enforcement of Security Interest.
Section 7-9A-622 - Effect of acceptance of collateral.
Universal Citation: AL Code § 7-9A-622 (2018)
Section 7-9A-622Effect of acceptance of collateral.
(a) 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.
(b) Discharge of subordinate interest notwithstanding noncompliance. A subordinate interest is discharged or terminated under subsection (a), even if the secured party fails to comply with this article.
(Act 2001-481, p. 647, §1.)
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