N.Y. Uniform Commercial Code Law § 9-618: Rights and Duties of Certain Secondary Obligors

Section 9--618. Rights and Duties of Certain Secondary Obligors.

(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.

(b) Effect of assignment, transfer, or subrogation. An assignment,

transfer, or subrogation described in subsection (a):

(1) is not a disposition of collateral under Section 9--610; and

(2) relieves the secured party of further duties under this

article.