Virginia Decodedhttps://vacode.org874458.9A-622Effect of acceptance of collateral20258.9A-6028.9A-623Commercial Code — Secured TransactionsDefaultDefault and Enforcement of Security Interest

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 title.

2000, c. 1007.