Arkansas Statutes

§ 4-9-622 — Effect of acceptance of collateral

Arkansas·Title 4
(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 chapter.

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Legislative History

Acts 2001, No. 1439, § 1.

Nearby Sections

15
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