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November 21, 2024 Clouds | 46°F
The 193rd General Court of the Commonwealth of Massachusetts

Section 9-618: Rights and Duties of Certain Secondary Obligors

Section 9–618. (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 Section 9–610; and

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