Section 409.618. 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 sub. (1) :

(a) Is not a disposition of collateral under s. 409.610 ; and

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

2001 a. 10 .