70A-9a-622. Effect of acceptance of collateral.

112 words·~1 min read·/ut/title-70a/chapter-9a/70a-9a-622

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)A secured party's acceptance of collateral in full or partial satisfaction of the obligation it secures:

(a)discharges the obligation to the extent consented to by the debtor;

(b)transfers to the secured party all of a debtor's rights in the collateral;

(c)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

(d)terminates any other subordinate interest.

(2)A subordinate interest is discharged or terminated under Subsection

(1), even if the secured party fails to comply with this title.

Enacted by Chapter 252 , 2000 General Session