Rhode Island General Laws 6A-1-310. Subordinated obligations
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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.
History of Section.
P.L. 2007, ch. 19, § 4; P.L. 2007, ch. 34, § 4.
Terms Used In Rhode Island General Laws 6A-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.
- person: may be construed to extend to and include co-partnerships and bodies corporate and politic. See Rhode Island General Laws 43-3-6