47-9622. Effect of acceptance of collateral A. 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. A subordinate interest is discharged or terminated under subsection A of this section, even if the secured party fails to comply with this chapter.
Arizona Legal Code