Statutes > New Mexico Statutes > Chapter 55 - Uniform Commercial Code. > Article 1 - General Provisions, 55-1-101 through 55-1-310. > Section 55-1-310 - Subordinated obligations.

Section 55-1-310 - Subordinated obligations.

55-1-310. 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.