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

Alabama Statutes

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

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

(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.

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(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.

Alabama § 7-9A-618 (Rights and Duties of Certain Secondary Obligors) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.