§490:9-622 - Effect of acceptance of collateral. - Hawaii Statutes

     §490:9-622  Effect of acceptance of collateral.  (a)  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)  A subordinate interest is discharged or terminated under subsection (a), even if the secured party fails to comply with this article. [L 2000, c 241, pt of §1]