§ 25-9-618. Rights and duties of certain secondary obligors. - North Carolina Statutes

§25‑9‑618.  Rights and duties of certain secondary obligors.

(a)        Rights and dutiesof secondary obligor. – A secondary obligor acquires the rights and becomesobligated to perform the duties of the secured party after the secondaryobligor:

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

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

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

(b)        Effect ofassignment, transfer, or subrogation. – An assignment, transfer, or subrogationdescribed in subsection (a) of this section:

(1)        Is not a dispositionof collateral under G.S. 25‑9‑610; and

(2)        Relieves the securedparty of further duties under this Article. (1965, c. 700, s. 1; 1975, c.862, s. 7; 2000‑169, s. 1.)