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: 1953 Comp., § 50A-1-209, enacted by Laws 1961, ch. 96, § 1-209; 1978 Comp. §55-1-209; recompiled by compiler as 1978 Comp. § 55-1-310; Laws 2005, ch. 144, § 24.