1. A secured party that desires to accept collateral in full or partial satisfaction of the
obligation it secures shall send its proposal to:
a. Any person from which the secured party has received, before the debtor
consented to the acceptance, a signed notification of a claim of an interest in the
collateral;
b. Any other secured party or lienholder that, ten days before the debtor consented
to the acceptance, held a security interest in or other lien on the collateral
perfected by the filing of a financing statement that:
(1)Identified the collateral;
(2)Was indexed under the debtor's name as of that date; and
(3)Was filed in the office or offices in which to file a financing statement against
the debtor covering the collateral as of that date; and
c. Any other secured party that, t
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1. A secured party that desires to accept collateral in full or partial satisfaction of the
obligation it secures shall send its proposal to:
a. Any person from which the secured party has received, before the debtor
consented to the acceptance, a signed notification of a claim of an interest in the
collateral;
b. Any other secured party or lienholder that, ten days before the debtor consented
to the acceptance, held a security interest in or other lien on the collateral
perfected by the filing of a financing statement that:
(1) Identified the collateral;
(2) Was indexed under the debtor's name as of that date; and
(3) Was filed in the office or offices in which to file a financing statement against
the debtor covering the collateral as of that date; and
c. Any other secured party that, ten days before the debtor consented to the
acceptance, held a security interest in the collateral perfected by compliance with
a statute, regulation, or treaty described in subsection 1 of section 41-09-31.
2. A secured party that desires to accept collateral in partial satisfaction of the obligation
it secures shall send its proposal to any secondary obligor in addition to the persons
described in subsection 1.
41-09-117. (9-622) Effect of acceptance of collateral.
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 chapter.