2378

(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:\n(1) Receives an assignment of a secured obligation from the secured party;\n(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\n(3) is subrogated to the rights of a secured party with respect to collateral.\n(b) Effect of assignment, transfer, or subrogation.— An assignment, transfer, or subrogation described in subsection (a) of this section:\n(1) Is not a disposition of collateral under § 2370 of this title; and\n(2) relieves the secured party of further duties under this chapter.\nHistory —Sept. 19, 1996, No. 241, added as § 9-618 on Jan. 17, 2012, No. 21, § 11, eff. 1 year after Jan. 17, 2012.