(1) A secured party’s acceptance of collateral in full or partial satisfaction of the obligation it secures:\n(a) Discharges the obligation to the extent consented to by the debtor;\n(b) Transfers to the secured party all of a debtor’s rights in the collateral;\n(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\n(d) Terminates any other subordinate interest.\n(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. [2001 c.445 §120]
Oregon Legal Code