Section 9-622 - Effect of acceptance of collateral. - Maryland Statutes

§ 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 title. 
 

[1999, ch. 282, § 2; 2001, ch. 408, § 2.]