(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 7-9A-610; and
(2) relieves the secured party of further duties under this article.
Structure Code of Alabama
Article 9A - Secured Transactions.
Division 1 - Default and Enforcement of Security Interest.
Section 7-9A-602 - Waiver and Variance of Rights and Duties.
Section 7-9A-603 - Agreement on Standards Concerning Rights and Duties.
Section 7-9A-604 - Procedure if Security Agreement Covers Real Property or Fixtures.
Section 7-9A-605 - Unknown Debtor or Secondary Obligor.
Section 7-9A-606 - Time of Default for Agricultural Lien.
Section 7-9A-607 - Collection and Enforcement by Secured Party.
Section 7-9A-609 - Secured Party's Right to Take Possession After Default.
Section 7-9A-610 - Disposition of Collateral After Default.
Section 7-9A-611 - Notification Before Disposition of Collateral.
Section 7-9A-612 - Timeliness of Notification Before Disposition of Collateral.
Section 7-9A-613 - Contents and Form of Notification Before Disposition of Collateral: General.
Section 7-9A-616 - Explanation of Calculation of Surplus or Deficiency.
Section 7-9A-617 - Rights of Transferee of Collateral.
Section 7-9A-618 - Rights and Duties of Certain Secondary Obligors.
Section 7-9A-619 - Transfer of Record or Legal Title.
Section 7-9A-621 - Notification of Proposal to Accept Collateral.
Section 7-9A-622 - Effect of Acceptance of Collateral.