(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 § 47-9-610; and(2) relieves the secured party of further duties under this chapter.Acts 2000, ch. 846, § 1.
Tennessee Legal Code