ORS 79.0622 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:

Discharges the obligation to the extent consented to by the debtor;

Transfers to the secured party all of a debtor’s rights in the collateral;

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

Terminates any other subordinate interest.

A subordinate interest is discharged or terminated under subsection (1) of this section, even if the secured party fails to comply with this chapter.