California Commercial Code 9622 – (a) A secured party’s acceptance of collateral in full or …
(a) A secured party’s acceptance of collateral in full or partial satisfaction of the obligation it secures does all of the following:
(1) It discharges the obligation to the extent consented to by the debtor.
Terms Used In California Commercial Code 9622
- Lien: A claim against real or personal property in satisfaction of a debt.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Security interest: includes any interest of a consignor and a buyer of accounts, chattel paper, a payment intangible, or a promissory note in a transaction that is subject to Division 9 (commencing with Section 9101). See California Commercial Code 1201
(2) It transfers to the secured party all of a debtor’s rights in the collateral.
(3) It 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.
(4) It terminates any other subordinate interest.
(b) A subordinate interest is discharged or terminated under subdivision (a), even if the secured party fails to comply with this division.
(Added by Stats. 1999, Ch. 991, Sec. 35. Effective January 1, 2000. Operative July 1, 2001, by Sec. 75 of Ch. 991 and Section 9701.)