RCW 62A.9A-622: Effect of acceptance of collateral.

RCWs > Title 62A > Chapter 62A.9A > Section 62A.9A-622

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62A.9A-621 << 62A.9A-622 >> 62A.9A-623

PDFRCW 62A.9A-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) of this section, even if the secured party fails to comply with this Article.

[2000 c 250 § 9A-622.]