(a) A secondary obligor acquires the rights and becomes obligated to perform the duties of the secured party after the secondary obligor:

Terms Used In New Mexico Statutes 55-9-618

  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.

(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 55-9-610 N.M. Stat. Ann.; and

(2)     relieves the secured party of further duties under N.M. Stat. Ann. Chapter 55, Article 9.

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