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.
Effective: July 12, 2006

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Terms Used In Kentucky Statutes 355.1-310

  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.

History: Created 2006 Ky. Acts ch. 242, sec. 24, effective July 12, 2006.