13 Pa. C.S. § 9622

Current through P.A. Acts 2023-66
Section 9622 - 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 which 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 division.

13 Pa.C.S. § 9622

2001, June 8, P.L. 123, No. 18, § 16, effective 7/1/2001.