§ 8.9A-618 — Rights and duties of certain secondary obligors

Virginia § 8.9A-618

• Jurisdiction: Virginia
• Title 8.9A: COMMERCIAL CODE — SECURED TRANSACTIONS
• Part 6: DEFAULT
• Subpart 1: DEFAULT AND ENFORCEMENT OF SECURITY INTEREST

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 the 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 § 8.9A-610; and

(2) relieves the secured party of further duties under this title.

Legislative History

1964, c. 219, § 8.9-504; 1973, c. 509; 2000, c. 1007.