New Jersey Revised Statutes § 12a:9-618 - Rights And Duties Of Certain Secondary Obligors.

12A:9-618 Rights and duties of certain secondary obligors.

12A:9-618. Rights and Duties of Certain Secondary Obligors.

(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 12A:9-610; and

(2)relieves the secured party of further duties under this chapter.

L.2001, c.117, s.1; amended 2001, c.386, s.107.


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Last modified: October 11, 2016