(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), even if the secured party fails to comply with this article. Laws, 2001, ch. 495, § 1, eff. 1/1/2002.
Mississippi Legal Code