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.
Tex. Bus. & Com. Code § 1.310
SUBORDINATED OBLIGATIONS
Known as the Uniform Commercial Code
The act spans §§ 1–12 (616 sections).
Added by Acts 2003, 78th Leg., ch. 542, Sec. 1, eff
Official source: Texas Constitution and Statutes. Reproduced from public-domain Texas statutes; confirm against the official source for the current text. Not legal advice.