(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 the 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 § 8.9A-610; and
(2) relieves the secured party of further duties under this title.
1964, c. 219, § 8.9-504; 1973, c. 509; 2000, c. 1007.
Structure Code of Virginia
Title 8.9A - Commercial Code - Secured Transactions
Part 1 - Default and Enforcement of Security Interest
§ 8.9A-602. Waiver and variance of rights and duties
§ 8.9A-603. Agreement on standards concerning rights and duties
§ 8.9A-604. Procedure if security agreement covers real property or fixtures
§ 8.9A-605. Unknown debtor or secondary obligor
§ 8.9A-606. Time of default for agricultural lien
§ 8.9A-607. Collection and enforcement by secured party
§ 8.9A-609. Secured party's right to take possession after default
§ 8.9A-610. Disposition of collateral after default
§ 8.9A-611. Notification before disposition of collateral
§ 8.9A-612. Timeliness of notification before disposition of collateral
§ 8.9A-613. Contents and form of notification before disposition of collateral; general
§ 8.9A-615. Application of proceeds of disposition; liability for deficiency and right to surplus
§ 8.9A-616. Explanation of calculation of surplus or deficiency
§ 8.9A-617. Rights of transferee of collateral
§ 8.9A-618. Rights and duties of certain secondary obligors
§ 8.9A-619. Transfer of record or legal title
§ 8.9A-621. Notification of proposal to accept collateral
§ 8.9A-622. Effect of acceptance of collateral