(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.
Structure Code of Alabama
Article 9A - Secured Transactions.
Division 1 - Default and Enforcement of Security Interest.
Section 7-9A-602 - Waiver and Variance of Rights and Duties.
Section 7-9A-603 - Agreement on Standards Concerning Rights and Duties.
Section 7-9A-604 - Procedure if Security Agreement Covers Real Property or Fixtures.
Section 7-9A-605 - Unknown Debtor or Secondary Obligor.
Section 7-9A-606 - Time of Default for Agricultural Lien.
Section 7-9A-607 - Collection and Enforcement by Secured Party.
Section 7-9A-609 - Secured Party's Right to Take Possession After Default.
Section 7-9A-610 - Disposition of Collateral After Default.
Section 7-9A-611 - Notification Before Disposition of Collateral.
Section 7-9A-612 - Timeliness of Notification Before Disposition of Collateral.
Section 7-9A-613 - Contents and Form of Notification Before Disposition of Collateral: General.
Section 7-9A-616 - Explanation of Calculation of Surplus or Deficiency.
Section 7-9A-617 - Rights of Transferee of Collateral.
Section 7-9A-618 - Rights and Duties of Certain Secondary Obligors.
Section 7-9A-619 - Transfer of Record or Legal Title.
Section 7-9A-621 - Notification of Proposal to Accept Collateral.
Section 7-9A-622 - Effect of Acceptance of Collateral.