Iowa Code § 554.9618

Current through March 29, 2024

Section 554.9618 - Rights and duties of certain secondary obligors

1.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:

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.Effect of assignment, transfer, or subrogation. 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.

Iowa Code § 554.9618

2000 Acts, ch 1149, §116, 187