1.    A secondary obligor acquires the rights and becomes obligated to perform the duties of the secured party after the secondary obligor:

Ask a business law question, get an answer ASAP!
Thousands of highly rated, verified business lawyers.
Click here to chat with a lawyer about your rights.

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.