57A-9-622. 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), even if the secured party fails to comply with this chapter. Source: SL 2000, ch 231.
South Dakota Legal Code