A.R.S. § 47-9622: Effect of acceptance of collateral

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 of this section, even if the secured party fails to comply with this chapter.