§ 10:9-618 — Rights and duties of certain secondary obligors

(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 R.S. 10:9-610; and
(2) relieves the secured party of further duties under this Chapter.

Legislative History

Acts 2001, No. 128, §1, eff. July 1, 2001.