Sec. 9618.
(1) A secondary obligor acquires the rights and becomes obligated to perform the duties of the secured party after all of the following:
(a) The secondary obligor receives an assignment of a secured obligation from the secured party.
(b) The secondary obligor receives a transfer of collateral from the secured party and agrees to accept the rights and assume the duties of the secured party.
(c) The secondary obligor is subrogated to the rights of a secured party with respect to collateral.
(2) An assignment, transfer, or subrogation described in subsection (1) results in both of the following:
(a) It is not a disposition of collateral under section 9610.
(b) It relieves the secured party of further duties under this article.
History: Add. 2000, Act 348, Eff. July 1, 2001
Last modified: October 10, 2016