Title 70A Chapter 9a Section 618

Uniform Commercial Code
Uniform Commercial Code - Secured Transactions
Section 618
Rights and duties of certain secondary obligors.

            

70A-9a-618.   Rights and duties of certain secondary obligors.

            (1) A secondary obligor acquires the rights and becomes obligated to perform the duties of the secured party after the secondary obligor:

            (a) receives an assignment of a secured obligation from the secured party;

            (b) receives a transfer of collateral from the secured party and agrees to accept the rights and assume the duties of the secured party; or

            (c) is subrogated to the rights of a secured party with respect to collateral.

            (2) An assignment, transfer, or subrogation described in Subsection (1):

            (a) is not a disposition of collateral under Section 70A-9a-610; and

            (b) relieves the secured party of further duties under this chapter.


Enacted by Chapter 252, 2000 General Session