Section 440.1209 - Subordination of obligation or right to payment; security interest not created; construction of section.
UNIFORM COMMERCIAL CODE (EXCERPT)
Act 174 of 1962
440.1209 Subordination of obligation or right to payment; security interest not created; construction of section.
Sec. 1209.
An obligation may be issued as subordinated to payment of another obligation of the person obligated, or a creditor may subordinate his right to payment of an obligation by agreement with either the person obligated or another creditor of the person obligated. Such a subordination does not create a security interest as against either the common debtor or a subordinated creditor. This section shall be construed as declaring the law as it existed prior to the enactment of this section and not as modifying it.
History: Add. 1978, Act 369, Eff. Jan. 1, 1979