§ 9-618. Rights and duties of certain secondary obligors.
119 words·~1 min read·
/de/title-6/chapter-9/9-618A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(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 a 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 Section 9-610; and
(2)relieves the secured party of further duties under this Article.