2016 Arizona Revised Statutes
Title 47 - Uniform Commercial Code
§ 47-9622 Effect of acceptance of collateral
47-9622. Effect of acceptance of collateral
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 of this section, even if the secured party fails to comply with this chapter.
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