Illinois Compiled Statutes 810 ILCS 5/9-622 – Effect of acceptance of collateral
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(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
(1) discharges the obligation to the extent consented
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to by the debtor;
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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.
Terms Used In Illinois Compiled Statutes 810 ILCS 5/9-622
- 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.
(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.