Short answer. Yes. Civil Code Article 1261 says that once consignation has been made and the creditor authorizes you, the debtor, to withdraw it, "he shall lose every preference which he may have over the thing." Any lien or priority claim the creditor held over that deposited money or thing disappears once the withdrawal is authorized.
What the law says
If, the consignation having been made, the creditor should authorize the debtor to withdraw the same, he shall lose every preference which he may have over the thing.
Civil Code, Article 1261 — Effect of Withdrawal Authorized by the Creditor. Read the full provision →
What the law says
The co-debtors, guarantors and sureties shall be released.
Civil Code, Article 1261 — Effect of Withdrawal Authorized by the Creditor. Read the full provision →
What Article 1261 covers
Article 1261 addresses what happens after consignation has already been made — the debtor has already deposited what is owed, typically because the creditor would not accept it directly — and the creditor later agrees to let the debtor take that deposit back. The rule is direct about the consequence: "if, the consignation having been made, the creditor should authorize the debtor to withdraw the same, he shall lose every preference which he may have over the thing." Once that authorization is given, the creditor cannot claim the same priority or security position over that particular deposit that they had before.
What losing "preference" means
A preference here refers to a priority or advantage the creditor held specifically over the thing that was consigned — for example, a security interest or lien attached to that deposit that would let the creditor be satisfied from it ahead of other claimants. Article 1261 wipes that out the moment the creditor lets the debtor withdraw it. The creditor is not left worse off than an ordinary unsecured claimant only because they agreed to the withdrawal; rather, the rule makes clear that agreeing to release the deposit back to the debtor comes at the cost of whatever special priority attached to it.
Co-debtors, guarantors, and sureties are released too
The consequence does not stop with the creditor's own preference. Article 1261 also states that "the co-debtors, guarantors and sureties shall be released." If other people had backed the obligation — as co-debtors sharing responsibility, or as guarantors or sureties standing behind the debtor's performance — their exposure ends once the creditor authorizes the withdrawal. They are not left on the hook for an obligation the creditor chose to unwind by letting the deposited thing go back to the debtor.
Why the law treats withdrawal this way
The logic connects both consequences. Consignation exists to let a debtor satisfy an obligation even when the creditor refuses to cooperate, and once it is made, the creditor's security interest is tied to that specific deposit rather than to the debtor personally. If the creditor later agrees to release that deposit back to the debtor, the security that depended on it no longer has anything to attach to — and because the accessory obligations of co-debtors, guarantors, and sureties existed to back the same underlying arrangement, releasing the deposit undoes their exposure along with the creditor's own preference.