Utah Code 70A-9a-622. Effect of acceptance of collateral
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(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.
(1)(a) discharges the obligation to the extent consented to by the debtor;
(1)(b) transfers to the secured party all of a debtor’s rights in the collateral;
(1)(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
(1)(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.