55-2A-311: Priority subject to subordination.

Nothing in this article prevents subordination by agreement by any person entitled to priority.

OFFICIAL COMMENTS

UCC Official Comments © by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.

Uniform Statutory Source: - Section 9-316 [55-9-316 NMSA 1978].

Purposes: - The several preceding sections deal with questions of priority. This section is inserted to make it entirely clear that a person entitled to priority may effectively agree to subordinate the claim. Only the person entitled to priority may make such an agreement: the rights of such a person cannot be adversely affected by an agreement to which that person is not a party.

Cross References: - Sections 1-102 and 2A-304 through 2A-310 [55-1-102 and 55-2A-304 to 55-2A-310 NMSA 1978, respectively].

"Agreement". Section 1-201(3) [55-1-201 NMSA 1978].

"Person". Section 1-201(30) [55-1-201 NMSA 1978].