1. Effect of acceptance. 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. Discharge of subordinate interest notwithstanding noncompliance. A subordinate interest is discharged or terminated under subsection 1, even if the secured party fails to comply with this Article.
2000 Acts, ch 1149, §120, 187
Effective July 1, 2001; 2000 Acts, ch 1149, §187; for law prior to July 1, 2001, see Code 2001
Previous Section 554.9621
Next Section 554.9623
© 2003 Cornell College and League of Women Voters of Iowa
Comments about this site or page?
webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.
Last update: Tue Jan 28 13:52:42 CST 2003
URL: /DOCS/IACODE/2003/554/9622.html
jhf