Legislation
SECTION 1-310
Subordinated Obligations
Uniform Commercial Code (UCC) CHAPTER 38, ARTICLE 1, PART 3
Section 1--310. Subordinated Obligations.
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.
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.