57A-9-618. Rights and duties of secondary obligor.

(a) 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) An assignment, transfer, or subrogation described in subsection (a):

(1)    Is not a disposition of collateral under § 57A-9-610; and

(2)    Relieves the secured party of further duties under this chapter.

Source: SL 2000, ch 231.