12A:1-209 - Subordination of obligation or right to payment of obligation by agreement; security interest not created - New Jersey Statutes

12A:1-209.  Subordination of obligation or right to payment of obligation by  agreement;  security interest not created
    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.

     L.1968, c. 445, s. 1, eff. Feb. 19, 1969.