HRS §490:9-618
When a backup payer takes over the secured party's role
This section says when a person who backed a loan (a secondary obligor) takes over the secured party's rights and duties, they must follow the same rules. This can happen through an assignment, a transfer of collateral, or subrogation. It is not a sale of collateral, and the original secured party is freed from further duties.
borrowerscreditorsdebtors
The statute, as written — Rights and duties of certain secondary obligors
(a) 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) An assignment, transfer, or subrogation described in subsection (a): (1) Is not a disposition of collateral under section 490:9-610; and (2) Relieves the secured party of further duties under this article.
Sections this one refers to
§490:9-610 What a lender can do with collateral after you default
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