9622
Effective Jan 1, 2000Added by Stats. 1999, Ch. 991, Sec. 35. Effective January 1, 2000. Operative July 1, 2001, by Sec. 75 of Ch. 991 and Section 9701.
(a) A secured party’s acceptance of collateral in full or partial satisfaction of the obligation it secures does all of the following:
- (1) It discharges the obligation to the extent consented to by the debtor.
- (2) It transfers to the secured party all of a debtor’s rights in the collateral.
- (3) It 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.
- (4) It terminates any other subordinate interest.
- (b) A subordinate interest is discharged or terminated under subdivision (a), even if the secured party fails to comply with this division.