Rights and Duties of Certain Secondary Obligors

  1. Law
  2. Georgia Code
  3. Commercial Code
  4. Secured Transactions
  5. Default
  6. Rights and Duties of Certain Secondary Obligors

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  1. 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.
  2. Effect of assignment, transfer, or subrogation. An assignment, transfer, or subrogation described in subsection (a) of this Code section:
    1. Is not a disposition of collateral under Code Section 11-9-610; and
    2. Relieves the secured party of further duties under this article.

(Code 1981, §11-9-618, enacted by Ga. L. 2001, p. 362, § 1.)

RESEARCH REFERENCES

U.L.A.

- Uniform Commercial Code (U.L.A.) § 9-618.


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