1.

 Effect of acceptance.

 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.

Terms Used In Iowa Code 554.9622

  • 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.
 2.

 Discharge of subordinate interest notwithstanding noncompliance.

 A subordinate interest is discharged or terminated under subsection 1, even if the secured party fails to comply with this Article.