Code of Alabama
Ala. Code § 7-9A-622 (2026)
Effect of Acceptance of Collateral.
✓ official Alabama Legislature (ALISON) text, current July 2026
(a) Effect of acceptance. 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) Discharge of subordinate interest notwithstanding noncompliance. A subordinate interest is discharged or terminated under subsection (a), even if the secured party fails to comply with this article.
(Act 2001-481, p. 647, §1.)
Notes of Decisions
Cited in 1
case, 2016–2016 · leading case: In re Scarver, 555 B.R. 822 (Bankr. M.D. Ala. 2016).
In re Scarver, 555 B.R. 822 (Bankr. M.D. Ala. 2016). “In Alabama (and presumably every other State), a secured creditor’s “acceptance of collateral in full or partial satisfaction of the obligation it secures .”
— Ala. Code § 7-9A-622(a)(2) — 1 case
In re Scarver, 555 B.R. 822 (Bankr. M.D. Ala. 2016). “In Alabama (and presumably every other State), a secured creditor’s “acceptance of collateral in full or partial satisfaction of the obligation it secures .”
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