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.
Source: L. 2006: Entire article R&RE, p. 469, § 1, effective September 1.
Editor's note: This section is similar to former § 4-1-209 as it existed prior to 2006.
Source: Former Section 1-209.
Changes from former law: This section is substantively identical to former Section 1-209. The language in that Section stating that it "shall be construed as declaring the law as it existed prior to the enactment of this Section and not as modifying it" has been deleted.
Structure Colorado Code
Title 4 - Uniform Commercial Code
Article 1 - General Provisions
Part 3 - Territorial Applicability and General Rules
§ 4-1-301. Territorial Applicability - Parties' Power to Choose Applicable Law
§ 4-1-302. Variation by Agreement
§ 4-1-303. Course of Performance, Course of Dealing, and Usage of Trade
§ 4-1-304. Obligation of Good Faith
§ 4-1-305. Remedies to Be Liberally Administered
§ 4-1-306. Waiver or Renunciation of Claim or Right After Breach
§ 4-1-307. Prima Facie Evidence by Third-Party Documents
§ 4-1-308. Performance or Acceptance Under Reservation of Rights