1. (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. (1) receives an assignment of a secured obligation from the secured party;
   2. (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. (3) is subrogated to the rights of a secured party with respect to collateral.

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

   1. (1) is not a disposition of collateral under Section 7-9A-610; and
   2. (2) relieves the secured party of further duties under this article.

(Act 2001-481, p. 647, §1.)