(1) 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;

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Terms Used In Kentucky Statutes 355.9-618

  • 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.

(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) of this section: (a) Is not a disposition of collateral under KRS § 355.9-610; and
(b) Relieves the secured party of further duties under this article.
Effective: July 1, 2001
History: Created 2000 Ky. Acts ch. 408, sec. 136, effective July 1, 2001.