Secured Transactions Act · s 24

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s 24Voluntary subordination of security interests

(1)

A secured party may, in a security agreement or otherwise, subordinate its security interest to any other interest.

(2)

No agreement to subordinate the security interest shall adversely affect rights of a person who is not a party to the agreement.

(3)

An agreement to subordinate a security interest shall be effective according to its terms between the parties and may also be enforced by a third party if the third party is the person for whose benefit the agreement is intended.

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