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Me. Rev. Stat. tit. 11, § 9-1622

Effect of acceptance of collateral

Known as the Uniform Commercial Code

The act spans §§ 2-101 to 9-1709 (548 sections).

PL 1999, c. 699, §A2 (NEW)

(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), even if the secured party fails to comply with this Article.

Official source: Maine Legislature. Reproduced from public-domain Maine statutes; confirm against the official source for the current text. Not legal advice.