2006 New York Code - Effect Of Acceptance Of Collateral



 
  Section 9--622. Effect 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.

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