Arkansas Code § 4-9-618 - 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):

(1) is not a disposition of collateral under ยง 4-9-610; and

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

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Last modified: November 15, 2016