| (1) |
A secondary obligor acquires the rights and becomes obligated to perform the duties of the secured party after the secondary obligor:
Terms Used In Utah Code 70A-9a-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) |
receives an assignment of a secured obligation from the secured party; |
| (b) |
receives a transfer of collateral from the secured party and agrees to accept the rights and assume the duties of the secured party; or |
| (c) |
is subrogated to the rights of a secured party with respect to collateral. |
|
| (2) |
An assignment, transfer, or subrogation described in Subsection (1):
| (a) |
is not a disposition of collateral under Section 70A-9a-610; and |
| (b) |
relieves the secured party of further duties under this chapter. |
|
Enacted by Chapter 252, 2000 General Session
