70A-9a-618. Rights and duties of certain secondary obligors.

123 words·~1 min read·/ut/title-70a/chapter-9a/70a-9a-618

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)A secondary obligor acquires the rights and becomes obligated to perform the duties of the secured party after the secondary obligor:

(a)receives an assignment of a secured obligation from the secured party;

(b)receives a transfer of collateral from the secured party and agrees to accept the rights and assume the duties of the secured party; or

(c)is subrogated to the rights of a secured party with respect to collateral.

(2)An assignment, transfer, or subrogation described in Subsection

(1):

(a)is not a disposition of collateral under Section 70A-9a-610 ; and

(b)relieves the secured party of further duties under this chapter.

Enacted by Chapter 252 , 2000 General Session