PERSONAL PROPERTY SECURITIES ACT 2009 - SECT 61 Voluntary subordination of security interests

PERSONAL PROPERTY SECURITIES ACT 2009 - SECT 61

  (1)   A secured party may (in a security agreement or otherwise) subordinate the secured party's security interest in collateral to any other interest in the collateral.

  (2)   The subordination:

  (a)   is effective according to its terms between the parties; and

  (b)   may be enforced by a third party if the third party is the person, or one of a class of persons, for whose benefit the subordination is intended.