Sec. 9618.
(1) A secondary obligor acquires the rights and becomes obligated to perform the duties of the secured party after all of the following:
(a) The secondary obligor receives an assignment of a secured obligation from the secured party.
(b) The secondary obligor receives a transfer of collateral from the secured party and agrees to accept the rights and assume the duties of the secured party.
(c) The secondary obligor is subrogated to the rights of a secured party with respect to collateral.
(2) An assignment, transfer, or subrogation described in subsection (1) results in both of the following:
(a) It is not a disposition of collateral under section 9610.
(b) It relieves the secured party of further duties under this article.
History: Add. 2000, Act 348, Eff. July 1, 2001
Structure Michigan Compiled Laws
Chapter 440 - Uniform Commercial Code
Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102)
Article 9 - Secured Transactions (440.9101...440.9994)
174-1962-9-6 - Part 6 Default (440.9601...440.9628)
174-1962-9-6-1. - Subpart 1. Default and Enforcement of Security Interest (440.9601...440.9624)
Section 440.9602 - Waiver and Variance of Rights and Duties.
Section 440.9603 - Agreement on Standards Concerning Rights and Duties.
Section 440.9604 - Procedure if Security Agreement Covers Real Property or Fixtures.
Section 440.9605 - Unknown Debtor or Secondary Obligor.
Section 440.9606 - Time of Default for Agricultural Lien.
Section 440.9607 - Collection and Enforcement by Secured Party.
Section 440.9609 - Secured Party's Right to Take Possession After Default.
Section 440.9610 - Disposition of Collateral After Default.
Section 440.9611 - Notification Before Disposition of Collateral.
Section 440.9612 - Timeliness of Notification Before Disposition of Collateral.
Section 440.9613 - Contents and Form of Notification Before Disposition of Collateral; Generally.
Section 440.9616 - Explanation of Calculation of Surplus or Deficiency.
Section 440.9617 - Rights of Transferee of Collateral.
Section 440.9618 - Rights and Duties of Certain Secondary Obligors.
Section 440.9619 - Transfer of Record or Legal Title.
Section 440.9621 - Notification of Proposal to Accept Collateral.
Section 440.9622 - Effect of Acceptance of Collateral.