1. A secured party may accept collateral in full or partial satisfaction of the obligation it secures only if:
a. The debtor consents to the acceptance under subsection 3;
b. The secured party does not receive, within the time set forth in subsection 4, a notification of objection to the proposal signed by:
(1) A person to which the secured party was required to send a proposal under section 41-09-116; or (2) Any other person, other than the debtor, holding an interest in the collateral subordinate to the security interest that is the subject of the proposal.
2. A purported or apparent acceptance of collateral under this section is ineffective unless:
a. The secured party consents to the acceptance in a signed record or sends a proposal to the debtor; and b. The conditions of subsection 1 are met.
3. For purposes of this section:
a. A debtor consents to an acceptance of collateral in partial satisfaction of the obligation it secures only if the debtor agrees to the terms of the acceptance in a record signed after default; and b. A debtor consents to an acceptance of collateral in full satisfaction of the obligation it secures only if the debtor agrees to the terms of the acceptance in a record signed after default or the secured party:
(1) Sends to the debtor after default a proposal that is unconditional or subject only to a condition that collateral not in the possession of the secured party be preserved or maintained;
(2) In the proposal, proposes to accept collateral in full satisfaction of the obligation it secures; and (3) Does not receive a notification of objection signed by the debtor within twenty days after the proposal is sent.
4. To be effective under subdivision c of subsection 1, a notification of objection must be received by the secured party:
a. In the case of a person to which the proposal was sent pursuant to section 41-09-116, within twenty days after notification was sent to that person; and b. In other cases:
(1) Within twenty days after the last notification was sent pursuant to section 41-09-116; or (2) If a notification was not sent, before the debtor consents to the acceptance under subsection 3.