12A:9-618. Rights and Duties of Certain Secondary Obligors.

   (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 12A:9-610; and

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

   L.2001, c.117, s.1; amended 2001, c.386, s.107.