Section 409.622. Effect of acceptance of collateral.

 

(1)   Effect of acceptance. 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)   Discharge of subordinate interest notwithstanding noncompliance. A subordinate interest is discharged or terminated under sub. (1) , even if the secured party fails to comply with this chapter.

2001 a. 10 .