Ala. Code § 7-1-310
Current with legislation from 2024 effective through May 17, 2024.
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.
Ala. Code § 7-1-310 (1975)