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Terms Used In Iowa Code 554.9618

  • 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.
554.9618 Rights and duties of certain secondary obligors.
1. 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:
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. Effect of assignment, transfer, or subrogation. An assignment, transfer, or subrogation described in subsection 1:
a. is not a disposition of collateral under § 554.9610; and
b. relieves the secured party of further duties under this Article.
2000 Acts, ch 1149, §116, 187