N.Y. Uniform Commercial Code 9-618 – Rights and Duties of Certain Secondary Obligors
Section 9–618. Rights and Duties of Certain Secondary Obligors.
Terms Used In N.Y. Uniform Commercial Code 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.
(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.