Rights and duties of certain secondary obligors

  1. Law
  2. Arkansas Code
  3. Business and Commercial Law
  4. Uniform Commercial Code
  5. Secured Transactions
  6. Default
  7. Default and Enforcement of Security Interest
  8. Rights and duties of certain secondary obligors

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

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

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

  2. (b) An assignment, transfer, or subrogation described in subsection (a):

    1. (1) is not a disposition of collateral under § 4-9-610; and

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


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