Texas Business & Commerce Code

§ 1.310 — SUBORDINATED OBLIGATIONS

BC § 1.310Title 1. UNIFORM COMMERCIAL CODE · Ch. 1. GENERAL PROVISIONS · Art. C. TERRITORIAL APPLICABILITY AND GENERAL RULES

Statute text

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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.

Legislative history

Added by Acts 2003, 78th Leg., ch. 542, Sec. 1, eff. Sept. 1, 2003.