§ 4-9-618 — 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 4-9-610; and

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

Legislative History

Source: L. 2001: Entire article R&RE, p. 1413, � 1, effective July 1.