Tex. Bus. & Com. Code § 9.622

EFFECT OF ACCEPTANCE OF COLLATERAL

Known as the Uniform Commercial Code

The act spans §§ 1–12 (616 sections).

Applied in 4 court decisions — leading case In Re Singletary (2006)

Most recently applied in Nelson v. Vernco Construction, Inc. (July 2013)

Added by Acts 1999, 76th Leg., ch. 414, Sec. 1.01, eff

How often courts cite this section

citing decisions per year

Court decisions citing this, by year. The dip in the last several years is a data-coverage gap, not a real trend — our corpus holds fewer opinions from the most recent years, so recent citations are undercounted.

(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 Subsection (a), even if the secured party fails to comply with this chapter.

Official source: Texas Constitution and Statutes. Reproduced from public-domain Texas statutes; confirm against the official source for the current text. Not legal advice.