GroundRules
Ark. Code Ann. § 4-9-622: Effect of acceptance of collateral.
Where this section sits in the code
- Title 4 Business and Commercial Law
- Subtitle 1. Uniform Commercial Code
- Chapter 9 Secured Transactions
- Part 6 — Default
- Subpart 1 Default and Enforcement of Security Interest
(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 chapter.
Collected 2026-09-17T21:07:03Z. Source file · JSON