| (1) |
A secured party’s acceptance of collateral in full or partial satisfaction of the obligation it secures:
Terms Used In Utah Code 70A-9a-622- Lien: A claim against real or personal property in satisfaction of a debt.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
| (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 title. |
Enacted by Chapter 252, 2000 General Session
