GroundRules
D.C. Code § 28:9-622: Effect of acceptance of collateral.
Where this section sits in the code
- Title 28. Commercial Instruments and Transactions. [Enacted title]
- Subtitle I. Uniform Commercial Code.
- Article 9. Secured Transactions.
- Part VI. 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 article.
Collected 2026-08-29T05:44:07Z. Source file · JSON