355.9 -622 Effect of acceptance of collateral. (1) 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) A subordinate interest is discharg ed or terminated under subsection (1) of this section, even if the secured party fails to comply with this article. Effective: July 1, 2001 History: Created 2000 Ky. Acts ch. 408, sec. 140, effective July 1, 2001.
Kentucky Legal Code