Kentucky Statutes 355.9-622 – Effect of acceptance of collateral
Current as of: 2024 | Check for updates
|
Other versions
(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) of this section, even if the secured party fails to comply with this article.
Effective: July 1, 2001
History: Created 2000 Ky. Acts ch. 408, sec. 140, effective July 1, 2001.
(a) Discharges the obligation to the extent consented to by the debtor;
Terms Used In Kentucky Statutes 355.9-622
- 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.
(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) of this section, even if the secured party fails to comply with this article.
Effective: July 1, 2001
History: Created 2000 Ky. Acts ch. 408, sec. 140, effective July 1, 2001.