- (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 .