(9-622) Effect of acceptance of collateral
N.D. Cent. Code § 41-09-117
in effect41-09-117. (9-622) Effect of acceptance of collateral
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 chapter.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://ndlegis.gov/cencode/t41c09.pdf#nameddest=41-09-117Fetched: 10/16/2026