§ 34.1-9-622 — Effect of acceptance of collateral

(a) A secured party's acceptance of collateral in full or
partial satisfaction of the obligation it secures:
(i) Discharges the obligation to the extent consented
to by the debtor;
(ii) Transfers to the secured party all of a debtor's
rights in the collateral;
(iii) 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
(iv) 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 article.