2023 Rhode Island General Laws
Title 6A - Uniform Commercial Code
Chapter 6A-9 - Secured Transactions
Part 6 - Default
Subpart 1 - Default and Enforcement of Security Interest
Section 6A-9-622. - Effect of acceptance of collateral.

§ 6A-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 chapter.

History of Section.
P.L. 2000, ch. 182, § 6; P.L. 2000, ch. 420, § 6.