8.9A-622 - A-622. Effect of acceptance of collateral. - Virginia Statutes

§ 8.9A-622. Effect of acceptance of collateral.

(a) Effect of acceptance. A secured party's acceptance of collateral in fullor 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 subjectof the debtor's consent and any subordinate security interest or othersubordinate lien; and

(4) terminates any other subordinate interest.

(b) Discharge of subordinate interest notwithstanding noncompliance. Asubordinate interest is discharged or terminated under subsection (a), evenif the secured party fails to comply with this title.

(2000, c. 1007.)