Ohio Rev. Code Ann. § 1309.622

Effect of acceptance of collateral - UCC 9-622

Known as the Uniform Commercial Code

The act spans §§ 1309.101 to 1309.709 (136 sections).

Effective: July 1, 2001; Latest Legislation: Senate Bill 74 - 124th General Assembly

(A) A secured party's acceptance of collateral in full or partial satisfaction of the obligation it secures:

(1) Discharges the obligation to the extent consented to by the debtor;

(2) Transfers to the secured party all of a debtor's rights in the collateral;

(3) 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

(4) Terminates any other subordinate interest.

(B) A subordinate interest is discharged or terminated under division (A) of this section even if the secured party fails to comply with this chapter.

Official source: Ohio Laws & Administrative Rules (Legislative Service Commission). Reproduced from public-domain Ohio statutes; confirm against the official source for the current text. Not legal advice.