ORS 79A.6220: UCC 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) of this section, even if the secured party fails to comply with this chapter.