2000 Minnesota Statutes

     336.9-622 Effect of acceptance of collateral. 

    (a)    Effect of acceptance.  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)    Discharge of subordinate interest notwithstanding 
 noncompliance.  A subordinate interest is discharged or 
 terminated under subsection (a), even if the secured party fails 
 to comply with this article. 

    HIST: 2000 c 399 art 1 s 123 

*   NOTE:  This section, as added by Laws 2000, chapter 399, 
*article 1, section 123, is effective July 1, 2001.  Laws 2000, 
*chapter 399, article 1, section 130.