Statute 104 9622

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 discharged or terminated under subsection 1 even if the secured party fails to comply with this article. (Added to NRS by 1999, 358)