1. Effect of acceptance. 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. Discharge of subordinate interest notwithstanding noncompliance. A subordinate interest is discharged or terminated under subsection 1, even if the secured party fails to comply with this Article.
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