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.
La. R.S. 10:1-310
Subordinated obligations
Known as the Uniform Commercial Code
The act spans §§ 10-1-101 to 10-9-343 (238 sections).
Acts 2006, No. 533, §1.
Official source: Louisiana State Legislature. Reproduced from public-domain Louisiana statutes; confirm against the official source for the current text. Not legal advice.