Section 24
Voluntary subordination of security interests
ActIn forceProvision 23 of 87
Section 24
(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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