(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.
Structure New York Laws
Article 9 - Secured Transactions
Sub Part 1 - Default and Enforcement of Security Interest
9-602 - Waiver and Varience of Rights and Duties
9-603 - Agreement on Standards Concerning Rights and Duties
9-604 - Procedure if Security Agreement Covers Real Property, Fixtures, or Cooperative Interests
9-605 - Unknown Debtor or Secondary Obligor
9-606 - Time of Default for Agricultural Lien
9-607 - Collection and Enforcement by Secured Party
9-609 - Secured Party's Right to Take Possession After Default
9-610 - Disposition of Collateral After Default
9-611 - Notification Before Disposition of Collateral
9-612 - Timeliness of Notification Before Disposition of Collateral
9-613 - Contents and Form of Notification Before Disposition of Collateral: General
9-615 - Application of Proceeds of Disposition; Liability for Deficiency and Right to Surplus
9-616 - Explanation of Calculation of Surplus or Deficiency
9-617 - Rights of Transferee of Collateral
9-618 - Rights and Duties of Certain Secondary Obligors
9-619 - Transfer of Record or Legal Title
9-621 - Notification of Proposal to Accept Collateral
9-622 - Effect of Acceptance of Collateral