Utah Code § 6-2-115
Claim subordination
Utah · Utah Code Title 6 — Assignment for Benefit of Creditors · Status: effective
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- Citation
- Utah Code § 6-2-115, Claim subordination, Utah, version 1 as recorded 2026-10-03, yourstate.us, https://yourstate.us/provision/2324246
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Full text
(1) A subordination agreement is enforceable under this chapter to the same extent the agreement is enforceable under other law.
(2) Subject to Subsection (3), the following claims are subordinate to a claim or interest that is senior or equal in priority to a claim or interest represented by a security or other equity interest in the assignor or an affiliate of the assignor:
(a) a claim arising from rescission of a purchase or sale of the security or other equity interest;
(b) a claim for damages arising from the purchase or sale of the security or other equity interest; and
(c) a claim for reimbursement or contribution allowed on account of the rescission or damage claim.
(3) If the security is common stock or another common equity interest, a claim subject to subordination under Subsection (2) has the same priority as common stock or another common equity interest.