North Dakota Code 41-09-113 – (9-618) Rights and duties of certain secondary obligors
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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 North Dakota Code 41-09-113
- 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 41-09-107; and b. Relieves the secured party of further duties under this chapter.