Subordinated Obligations

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An obligation may be issued as subordinated to performance of another obligation of the person obligated, or a creditor may subordinate its right to performance of an obligation by agreement with either the person obligated or another creditor of the person obligated. Such a subordination does not create a security interest as against either the common debtor or a subordinated creditor.

(Code 1981, §11-1-310, enacted by Ga. L. 2015, p. 996, § 3A-1/SB 65.)


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