9618
Effective Jan 1, 2000Added by Stats. 1999, Ch. 991, Sec. 35. Effective January 1, 2000. Operative July 1, 2001, by Sec. 75 of Ch. 991 and Section 9701.
(a) A secondary obligor acquires the rights and becomes obligated to perform the duties of the secured party after any of the following occurs:
- (1) The secondary obligor receives an assignment of a secured obligation from the secured party.
- (2) The secondary obligor receives a transfer of collateral from the secured party and agrees to accept the rights and assume the duties of the secured party.
- (3) The secondary obligor is subrogated to the rights of a secured party with respect to collateral.
(b) Both of the following rules apply with respect to an assignment, transfer, or subrogation described in subdivision (a):
- (1) It is not a disposition of collateral under Section 9610.
- (2) It relieves the secured party of further duties under this division.