N.Y. U.C.C. 9-622

Section 9--622. Effect of Acceptance of Collateral.\n (a) Effect of acceptance. A secured party's acceptance of collateral\nin full or partial satisfaction of the obligation it secures:\n (1) discharges the obligation to the extent consented to by the\n debtor;\n (2) transfers to the secured party all of a debtor's rights in\n the collateral;\n (3) discharges the security interest or agricultural lien that is\n the subject of the debtor's consent and any subordinate\n security interest or other subordinate lien; and\n (4) terminates any other subordinate interest.\n (b) Discharge of subordinate interest notwithstanding noncompliance. A\nsubordinate interest is discharged or terminated under subsection (a),\neven if the secured party fails to comply with this article.\n