Rights and duties of certain secondary obligors (§ 8.9A-618)

§ 8.9A-618 – Rights and duties of certain secondary obligors

a. Rights and duties of secondary obligor. A secondary obligor acquires the rights and becomes obligated to perform the duties of the secured party after the secondary obligor:

1. receives an assignment of a secured obligation from the secured party;

2. receives a transfer of collateral from the secured party and agrees to accept the rights and assume the duties of the secured party; or

3. is subrogated to the rights of the secured party with respect to collateral.

b. Effect of assignment, transfer, or subrogation. An assignment, transfer, or subrogation described in subsection (a):

1. is not a disposition of collateral under § 8.9A-610; and

2. relieves the secured party of further duties under this title.