§ 11-9-622. Effect of Acceptance of Collateral

1. 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.
2. Discharge of subordinate interest notwithstanding noncompliance.    A subordinate interest is discharged or terminated under subsection (a) of this Code section, even if the secured party fails to comply with this article.

History. Code 1981, § 11-9-622 , enacted by Ga. L. 2001, p. 362, § 1.