(1) This section establishes when a judgment described under ORS 806.040 (Judgments for which financial responsibility requirements established) is settled for purposes of ORS 809.130 (Suspension or revocation of registration or driving privileges for unsettled judgment), 809.280 (Department procedures following court order of suspension or revocation) and 809.415 (Suspensions for conduct involving judgments, financial responsibility, dishonesty). A judgment shall be deemed settled for the purposes described if any of the following occur:
(a) Payments in the amounts established by the payment schedule under ORS 806.070 (Minimum payment schedule) have been credited upon any judgment or judgments rendered in excess of those amounts.
(b) Judgments rendered for less than the amounts established under ORS 806.070 (Minimum payment schedule) have been satisfied.
(c) The judgment creditor and the judgment debtor have mutually agreed upon a compromise settlement of the judgment.
(d) The judgment against the judgment debtor has been discharged in bankruptcy.
(2) Payments made in settlement of any claims because of bodily injury, death or property damage arising from the accident shall be credited in reduction of the amounts provided for in subsection (1) of this section. [1983 c.338 §360; 1985 c.16 §175; 2003 c.175 §11; 2003 c.402 §33]