(810 ILCS 5/9-622)
Sec. 9-622.
Effect of acceptance of collateral.
(a) Effect of acceptance. 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 |
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(2) transfers to the secured party all of a debtor's
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| rights in the collateral;
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(3) discharges the security interest or agricultural
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| lien that is the subject of the debtor's consent and any subordinate security interest or other subordinate lien; and
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(4) terminates any other subordinate interest.
(b) Discharge of subordinate interest notwithstanding
noncompliance. A subordinate interest is discharged or terminated under
subsection (a), even if the secured party fails to comply with this Article.
(Source: P.A. 91-893, eff. 7-1-01.)
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