(a) 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) A subordinate interest is discharged or terminated under subsection (a), even if the secured party fails to comply with this title.
Structure Maryland Statutes
Title 9 - Secured Transactions
Section 9-602 - Waiver and Variance of Rights and Duties
Section 9-603 - Agreement on Standards Concerning Rights and Duties
Section 9-604 - Procedure if Security Agreement Covers Real Property or Fixtures
Section 9-605 - Unknown Debtor or Secondary Obligor
Section 9-606 - Time of Default for Agricultural Lien
Section 9-607 - Collection and Enforcement by Secured Party
Section 9-609 - Secured Party's Right to Take Possession After Default
Section 9-610 - Disposition of Collateral After Default
Section 9-611 - Notification Before Disposition of Collateral
Section 9-612 - Timeliness of Notification Before Disposition of Collateral
Section 9-613 - Contents and Form of Notification Before Disposition of Collateral: General
Section 9-616 - Explanation of Calculation of Surplus or Deficiency
Section 9-617 - Rights of Transferee of Collateral
Section 9-618 - Rights and Duties of Certain Secondary Obligors
Section 9-619 - Transfer of Record or Legal Title
Section 9-621 - Notification of Proposal to Accept Collateral
Section 9-622 - Effect of Acceptance of Collateral
Section 9-623 - Right to Redeem Collateral
Section 9-625 - Remedies for Secured Party's Failure to Comply With Title
Section 9-626 - Action in Which Deficiency or Surplus Is in Issue
Section 9-627 - Determination of Whether Conduct Was Commercially Reasonable