Vermont Statutes Title 9 Sec. 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.

§ 9—618. Rights and duties of certain secondary obligors

(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 9—610 of this title; and

(2) relieves the secured party of further duties under this article. (Added 1999, No. 106 (Adj. Sess.), § 2, eff. July 1, 2001.)