New York Uniform Commercial Code Code § 1-310

Subordinated Obligations
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Section 1--310. Subordinated Obligations.\n  An obligation may be issued as subordinated to performance of another\nobligation of the person obligated, or a creditor may subordinate its\nright to performance of an obligation by agreement with either the\nperson obligated or another creditor of the person obligated.\nSubordination does not create a security interest as against either the\ncommon debtor or a subordinated creditor.\n

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