30-1-209. 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.

     History: En. Sec. 3, Ch. 402, L. 1983; amd. Sec. 8, Ch. 575, L. 2005.