Section 11-9-618 - 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) of this Code section: (1) Is not a disposition of collateral under Code Section 11-9-610; and(2) Relieves the secured party of further duties under this article.Added by 2001 Ga. Laws 191, § 1, eff. 7/1/2001.