Section 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.L. 2001: Entire article R&RE, p. 1413, § 1, effective July 1.This section is similar to former § 4-9-504 (5) as it existed prior to 2001.