(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 title.
2000, c. 1007.
Structure Code of Virginia
Title 8.9A - Commercial Code - Secured Transactions
Part 1 - Default and Enforcement of Security Interest
§ 8.9A-602. Waiver and variance of rights and duties
§ 8.9A-603. Agreement on standards concerning rights and duties
§ 8.9A-604. Procedure if security agreement covers real property or fixtures
§ 8.9A-605. Unknown debtor or secondary obligor
§ 8.9A-606. Time of default for agricultural lien
§ 8.9A-607. Collection and enforcement by secured party
§ 8.9A-609. Secured party's right to take possession after default
§ 8.9A-610. Disposition of collateral after default
§ 8.9A-611. Notification before disposition of collateral
§ 8.9A-612. Timeliness of notification before disposition of collateral
§ 8.9A-613. Contents and form of notification before disposition of collateral; general
§ 8.9A-615. Application of proceeds of disposition; liability for deficiency and right to surplus
§ 8.9A-616. Explanation of calculation of surplus or deficiency
§ 8.9A-617. Rights of transferee of collateral
§ 8.9A-618. Rights and duties of certain secondary obligors
§ 8.9A-619. Transfer of record or legal title
§ 8.9A-621. Notification of proposal to accept collateral
§ 8.9A-622. Effect of acceptance of collateral