New York Laws
Part 3 - Territorial Applicability and General Rules
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.