The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
(Cite as: 9A V.S.A. § 9-622)
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§ 9—622. Effect of acceptance of collateral
(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) of this section,
whether or not the secured party sends or is required to send its proposal to the
holder of the interest. However, any person to which the secured party was required
to send, but did not send, its proposal has the remedy provided by subsection 9—625(b) of this title. (Added 1999, No. 106 (Adj. Sess.), § 2, eff. July 1, 2001.)