(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 9- 1610; and

(b)__Relieves the secured party of further duties under this Article.

Official Comment

1. Source. Former Section 9504(5).

2. Scope of This Section. Under this section, assignments of secured obligations and other transactions (regardless of form) that function like assignments of secured obligations are not dispositions to which Part 6 applies. Rather, they constitute assignments of rights and (occasionally) delegations of duties. Application of this section may require an investigation into the agreement of the parties, which may not be reflected in the words of the repurchase agreement (e.g., when the agreement requires a recourse party to "purchase the collateral" but contemplates that the purchaser will then conduct an Article 9 [Maine cite Article 9-A] foreclosure disposition).

This section, like former Section 9-504(5), does not constitute a general and comprehensive rule for allocating rights and duties upon assignment of a secured obligation. Rather, it applies only in situations involving a secondary obligor described in subsection (a) [Maine cite subsection (1)]. In other contexts, the agreement of the parties and applicable law other than Article 9 [Maine cite Article 9-A] determine whether the assignment imposes upon the assignee any duty to the debtor and whether the assignor retains its duties to the debtor after the assignment.

Subsection (a)(1) [Maine cite subsection (1), paragraph (a)] applies when there has been an assignment of an obligation that is secured at the time it is assigned. Thus, if a secondary obligor acquires the collateral at a disposition under Section 9- 610 [Maine cite section 9-1610] and simultaneously or subsequently discharges the unsecured deficiency claim,