New York Laws
Sub Part 1 - Default and Enforcement of Security Interest
9-622 - Effect of Acceptance of Collateral

(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 New York Laws