TITLE 28

COMMERCIAL TRANSACTIONS

CHAPTER 9

SECURED TRANSACTIONS

PART 6.

DEFAULT

28-9-618.  Rights and duties of certain secondary obligors. (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) of this section:

(1)  Is not a disposition of collateral under section 28-9-610; and

(2)  Relieves the secured party of further duties under this chapter.

History:

[28-9-618, added 2001, ch. 208, sec. 2, p. 791.]