N.D. Cent. Code § 41-09-117: (9-622) Effect of acceptance of collateral

1.A secured party's acceptance of collateral in full or partial satisfaction of the obligation it secures:

a.Discharges the obligation to the extent consented to by the debtor;

b.Transfers to the secured party all of a debtor's rights in the collateral;

c.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

d.Terminates any other subordinate interest.

2.A subordinate interest is discharged or terminated under subsection 1, even if the secured party fails to comply with this chapter.