Effective: June 29, 2011
Latest Legislation: House Bill 9 - 129th General Assembly
Subordinated obligations [UCC 1-310]
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. Subordination does not create a security interest as against either the common debtor or a subordinated creditor.