(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.

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Terms Used In Rhode Island General Laws 6A-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) 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 chapter.

History of Section.
P.L. 2000, ch. 182, § 6; P.L. 2000, ch. 420, § 6.