(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 § 6A-9-610; and (2) Relieves the secured party of further duties under this chapter. History of Section.P.L. 2000, ch. 182, § 6; P.L. 2000, ch. 420, § 6.
Rhode Island Legal Code