Del. Code tit. 6 § 9-622

Current through 2024 Legislative Session Act Chapter 269
Section 9-622 - Effect of acceptance of collateral
(a) 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.
(b) Discharge of subordinate interest notwithstanding noncompliance. -- A subordinate interest is discharged or terminated under subsection (a), even if the secured party fails to comply with this Article.

6 Del. C. § 9-622

72 Del. Laws, c. 401, § 1.;