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

2. 2. Effect of assignment, transfer, or subrogation. An assignment, transfer, or subrogation described in subsection 1:

   1. a. is not a disposition of collateral under section 554.9610; and
   2. b. relieves the secured party of further duties under this Article.

2000 Acts, ch 1149, §116, 187