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Effect of acceptance of collateral

KRS 355.9-622
in effect
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355.9-622. 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) of this section, even if the secured party fails to comply with this article. Effective: July 1, 2001 History: Created 2000 Ky. Acts ch. 408, sec. 140, effective July 1, 2001.
Source: Kentucky Legislative Research Commission (legislature.ky.gov)URL: https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33854Fetched: 10/20/2026

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