Rights and duties of certain secondary obligors

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  • (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 § 9–610; and

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


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