§ 7-9A-618 — Rights and Duties of Certain Secondary Obligors

Alabama § 7-9A-618

• Jurisdiction: Alabama
• Title 7: Commercial Code
• Art. 9A: Secured Transactions
• Div. 1: Default and Enforcement of Security Interest
• Part 6: Default

Text

(a) 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) 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) Effect of assignment, transfer, or subrogation. An assignment, transfer, or subrogation described in subsection (a):
(1) is not a disposition of collateral under Section 7-9A-610; and
(2) relieves the secured party of further duties under this article.

Legislative History

(Act 2001-481, p. 647, §1.)