§ 25-9-618. Rights and duties of certain secondary obligors.
§25‑9‑618. Rights and duties of certain secondary obligors.
(a) Rights and dutiesof secondary obligor. A secondary obligor acquires the rights and becomesobligated to perform the duties of the secured party after the secondaryobligor:
(1) Receives anassignment of a secured obligation from the secured party;
(2) Receives a transferof collateral from the secured party and agrees to accept the rights and assumethe duties of the secured party; or
(3) Is subrogated to therights of a secured party with respect to collateral.
(b) Effect ofassignment, transfer, or subrogation. An assignment, transfer, or subrogationdescribed in subsection (a) of this section:
(1) Is not a dispositionof collateral under G.S. 25‑9‑610; and
(2) Relieves the securedparty of further duties under this Article. (1965, c. 700, s. 1; 1975, c.862, s. 7; 2000‑169, s. 1.)