Section 7-9A-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 7-9A-610; and(2) relieves the secured party of further duties under this article.Ala. Code § 7-9A-618 (1975)
Act 2001-481, p. 647, §1.