Sec. 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.
Added by Acts 2003, 78th Leg., ch. 542, Sec. 1, eff. Sept. 1, 2003.
Structure Texas Statutes
Title 1 - Uniform Commercial Code
Chapter 1 - General Provisions
Subchapter C. Territorial Applicability and General Rules
Section 1.301. Territorial Application of the Title; Parties' Power to Choose Applicable Law
Section 1.302. Variation by Agreement
Section 1.303. Course of Performance, Course of Dealing, and Usage of Trade
Section 1.304. Obligation of Good Faith
Section 1.305. Remedies to Be Liberally Administered
Section 1.306. Waiver of Renunciation of Claim or Right After Breach
Section 1.307. Prima Facie Evidence by Third-Party Documents
Section 1.308. Performance or Acceptance Under Reservation of Rights