(a) 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:

(1)  Receives an assignment of a secured obligation from the secured party;

(2)  Receives a transfer of collateral from the secured party and agrees to accept the rights and assume the duties of the secured party; or

(3)  Is subrogated to the rights of a secured party with respect to collateral.

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Terms Used In Rhode Island General Laws 6A-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) Effect of assignment, transfer, or subrogation.  An assignment, transfer, or subrogation described in subsection (a):

(1)  Is not a disposition of collateral under § 6A-9-610; and

(2)  Relieves the secured party of further duties under this chapter.

History of Section.
P.L. 2000, ch. 182, § 6; P.L. 2000, ch. 420, § 6.