104.9622 - Effect of acceptance of collateral in satisfaction of obligation. - Nevada Statutes

104.9622  Effect of acceptance of collateral in satisfaction of obligation.

      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 article.

      (Added to NRS by 1999, 358)