1. (a) Effect of acceptance. A secured party's acceptance of collateral in full or partial satisfaction of the obligation it secures:
2. (1) discharges the obligation to the extent consented to by the debtor;
3. (2) transfers to the secured party all of a debtor's rights in the collateral;
4. (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
5. (4) terminates any other subordinate interest.
6. (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 title.

2000, c. 1007.