(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 the secured party with respect to collateral.\n(b) Effect of assignment, transfer, or subrogation. An assignment, transfer, or subrogation described in subsection (a):\n(1) is not a disposition of collateral under § 8.9A-610; and\n(2) relieves the secured party of further duties under this title.\n1964, c. 219, § 8.9-504; 1973, c. 509; 2000, c. 1007.
Virginia Legal Code