554.9622  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:
  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