70A-9a-618. Rights and duties of certain secondary obligors.
- (1) A secondary obligor acquires the rights and becomes obligated to perform the duties of the secured party after the secondary obligor:
- (a) receives an assignment of a secured obligation from the secured party;
- (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
- (c) is subrogated to the rights of a secured party with respect to collateral.
- (2) An assignment, transfer, or subrogation described in Subsection (1):
- (a) is not a disposition of collateral under Section 70A-9a-610; and
- (b) relieves the secured party of further duties under this chapter.
Enacted by Chapter 252, 2000 General Session