Section 11-9-622. 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 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)  Discharge of subordinate interest notwithstanding noncompliance. A subordinate interest is discharged or terminated under subsection (a) of this Code section, even if the secured party fails to comply with this article.

Code 1981, § 11-9-622, enacted by Ga. L. 2001, p. 362, § 1.