Iowa Code § 554.9618: Rights and duties of certain secondary obligors.

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;

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 554.9610; and

b. relieves the secured party of further duties under this Article.