(a) 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) An assignment, transfer, or subrogation described in subsection (a) of this section:
(1) Is not a disposition of collateral under section 4-9-610; and
(2) Relieves the secured party of further duties under this article.
Source: L. 2001: Entire article R&RE, p. 1413, � 1, effective July 1.
Editor's note: This section is similar to former � 4-9-504 (5) as it existed prior to 2001.