Alabama § 7-9A-622 Effect of Acceptance of Collateral

Alabama Statutes

§ 7-9A-622 — Effect of Acceptance of Collateral

Alabama·Title 7 Commercial Code·Art. 9A Secured Transactions·Div. 1 Default and Enforcement of Security Interest·Part 6 Default

(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), even if the secured party fails to comply with this article.

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(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), even if the secured party fails to comply with this article.

Alabama § 7-9A-622 (Effect of Acceptance of Collateral) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.