N.Y. Uniform Commercial Code Law § 1-310: Subordinated Obligations

Section 1--310. Subordinated Obligations.

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.