CHAPTER 1. GENERAL PROVISIONS
IC 26
TITLE 26. COMMERCIAL LAW
IC 26-1
ARTICLE 1. UNIFORM COMMERCIAL CODE
IC 26-1-1
Chapter 1. General Provisions
IC 26-1-1-101
Short title; application
Sec. 101. (1) IC 26-1 shall be known and may be cited as UniformCommercial Code.
(2) IC 26-1 applies to a transaction to the extent that it is governedby another article of the Uniform Commercial Code.
(Formerly: Acts 1963, c.317, s.1-101.) As amended by P.L.152-1986,SEC.110; P.L.143-2007, SEC.1.
IC 26-1-1-102
Purposes; rules of construction; variation by agreement
Sec. 102. (1) IC 26-1 shall be liberally construed and applied topromote its underlying purposes and policies.
(2) Underlying purposes and policies of IC 26-1 are:
(a) to simplify, clarify, and modernize the law governingcommercial transactions;
(b) to permit the continued expansion of commercial practicesthrough custom, usage, and agreement of the parties;
(c) to make uniform the law among the various jurisdictions.
(3) The effect of provisions of IC 26-1 may be varied byagreement, except as otherwise provided in IC 26-1 and except thatthe obligations of good faith, diligence, reasonableness, and careprescribed by IC 26-1 may not be disclaimed by agreement, but theparties may by agreement determine the standards by which theperformance of such obligations is to be measured, if such standardsare not manifestly unreasonable.
(4) The presence in certain provisions of IC 26-1 of the words"unless otherwise agreed" or words of similar import does not implythat the effect of other provisions may not be varied by agreementunder subsection (3).
(5) In IC 26-1, unless the context otherwise requires:
(a) words in the singular number include the plural, and in theplural include the singular;
(b) words of the masculine gender include the feminine and theneuter, and when the sense so indicates, words of the neutergender may refer to any gender.
(Formerly: Acts 1963, c.317, s.1-102.) As amended by P.L.152-1986,SEC.111.
IC 26-1-1-103 Supplementary general principles of law applicable
Sec. 103. Unless displaced by the particular provisions of IC 26-1,the principles of law and equity, including the law merchant and thelaw relative to capacity to contract, principal and agent, estoppel,fraud, misrepresentation, duress, coercion, mistake, bankruptcy, orother validating or invalidating cause, shall supplement theprovisions of IC 26-1.
(Formerly: Acts 1963, c.317, s.1-103.) As amended by P.L.152-1986,SEC.112.
IC 26-1-1-104
Construction against implicit repeal
Sec. 104. IC 26-1 being a general statute intended as a unifiedcoverage of its subject matter, no part of it shall be deemed to beimpliedly repealed by subsequent legislation if such construction canreasonably be avoided.
(Formerly: Acts 1963, c.317, s.1-104.) As amended by P.L.152-1986,SEC.113.
IC 26-1-1-105
Repealed
(Repealed by P.L.143-2007, SEC.78.)
IC 26-1-1-106
Remedies to be liberally administered
Sec. 106. (1) The remedies provided by IC 26-1 shall be liberallyadministered to the end that the aggrieved party may be put in asgood a position as if the other party had fully performed, but neitherconsequential or special nor penal damages may be had except asspecifically provided in IC 26-1 or by other rule of law.
(2) Any right or obligation declared by IC 26-1 is enforceable byaction unless the provision declaring it specifies a different andlimited effect.
(Formerly: Acts 1963, c.317, s.1-106.) As amended by P.L.152-1986,SEC.114.
IC 26-1-1-107
Waiver or renunciation of claim or right after breach
Sec. 107. Any claim or right arising out of an alleged breach canbe discharged in whole or in part without consideration by a writtenwaiver or renunciation signed and delivered by the aggrieved party.
(Formerly: Acts 1963, c.317, s.1-107.)
IC 26-1-1-108
Severability
Sec. 108. The provisions of IC 26-1 are severable in the mannerprovided by IC 1-1-1-8(b).
(Formerly: Acts 1963, c.317, s.1-108.) As amended by P.L.152-1986,SEC.115.
IC 26-1-1-108.1
Powers of secretary of state; filing; acceptance of payment for fees
Sec. 108.1. (a) The secretary of state may provide that a documentrequired to be filed under this article with the secretary of state maybe filed by telecopy, facsimile, or other form of electronictransmission meeting the requirements established by the secretaryof state.
(b) The secretary of state may accept payment of a filing fee fora document filed by electronic transmission by credit card, debitcard, charge card, or similar method. However, if the filing fee ispaid by credit card, debit card, charge card, or similar method, theliability is not finally discharged until the secretary of state receivespayment or credit from the institution responsible for making thepayment or credit.
(c) The secretary of state may contract with a bank or credit cardvendor for acceptance of bank or credit cards. However, if there is avendor transaction charge or discount fee, whether billed to thesecretary of state or charged directly to the secretary of state'saccount, the secretary of state or the credit card vendor may collectfrom the person using the bank or credit card a fee that may notexceed the highest transaction charge or discount fee charged to thesecretary of state by the bank or credit card vendor during the mostrecent collection period. The fee may be collected regardless of anyagreement between the bank and a credit card vendor or regardlessof any internal policy of the credit card vendor that may prohibit thistype of fee. The fee is a permitted additional charge underIC 24-4.5-3-202.
As added by P.L.11-1996, SEC.33.
IC 26-1-1-108.2
Effect on Electronic Signatures in Global and National CommerceAct
Sec. 108.2. This article modifies, limits, and supersedes theElectronic Signatures in Global and National Commerce Act (15U.S.C. 7001 et seq.).
However, this article does not:
(a) modify, limit, or supersede 15 U.S.C. 7001(c); or
(b) authorize the electronic delivery of a notice described in 15U.S.C. 7003(b).
As added by P.L.143-2007, SEC.2.
IC 26-1-1-109
Repealed
(Repealed by P.L.16-1983, SEC.23(a).)
IC 26-1-1-201
General definitions
Sec. 201. Subject to additional definitions contained in IC 26-1-2through IC 26-1-10 which are applicable to specific provisions, andunless the context otherwise requires, in IC 26-1: (1) "Action" in the sense of a judicial proceeding includesrecoupment, counterclaim, setoff, suit in equity, and any otherproceedings in which rights are determined.
(2) "Aggrieved party" means a party entitled to resort to aremedy.
(3) "Agreement" means the bargain of the parties in fact asfound in their language or by implication from othercircumstances including course of dealing or usage of trade orcourse of performance as provided in IC 26-1-1-205. Whetheran agreement has legal consequences is determined by theprovisions of IC 26-1, if applicable; otherwise by the law ofcontracts (IC 26-1-1-103). (Compare "Contract".)
(4) "Bank" means a person engaged in the business of bankingand includes a savings bank, savings and loan association,credit union, and trust company.
(5) "Bearer" means the person:
(A) in control of a negotiable electronic document of title; or
(B) in possession of a negotiable instrument, a negotiabletangible document of title, or a certificated security payableto bearer or endorsed in blank.
(6) "Bill of lading" means a document of title evidencing thereceipt of goods for shipment issued by a person engaged in thebusiness of directly or indirectly transporting or forwardinggoods. The term does not include a warehouse receipt. The termincludes an airbill. "Airbill" means a document serving for airtransportation as a bill of lading does for marine or railtransportation, and includes an air consignment note or airwaybill.
(7) "Branch" includes a separately incorporated foreign branchof a bank.
(8) "Burden of establishing" a fact means the burden ofpersuading the triers of fact that the existence of the fact is moreprobable than its nonexistence.
(9) "Buyer in ordinary course of business" means a person thatbuys goods in good faith without knowledge that the saleviolates the rights of another person in the goods, and in theordinary course from a person, other than a pawnbroker, in thebusiness of selling goods of that kind. A person buys goods inthe ordinary course of business if the sale to the personcomports with the usual or customary practices in the kind ofbusiness in which the seller is engaged or with the seller's ownusual or customary practices. A person that sells oil, gas, orother minerals at the wellhead or minehead is a person in thebusiness of selling goods of that kind. A buyer in ordinarycourse of business may buy for cash, by exchange of otherproperty, or on secured or unsecured credit, and may requiregoods or documents of title under a preexisting contract forsale. Only a buyer that takes possession of the goods or has aright to recover the goods from that seller under IC 26-1-2 maybe a buyer in ordinary course of business. A person that
acquires goods in a transfer in bulk or as security for or total orpartial satisfaction of a money debt is not a buyer in ordinarycourse of business.
(10) "Conspicuous". A term or clause is conspicuous when it isso written that a reasonable person against whom it is to operateought to have noticed it. A printed heading in capitals (as:NONNEGOTIABLE BILL OF LADING) is conspicuous.Language in the body of a form is conspicuous if it is in largeror other contrasting type or color. But in a telegram any statedterm is conspicuous. Whether a term or clause is conspicuousor not is for decision by the court.
(11) "Contract" means the total legal obligation which resultsfrom the parties' agreement as affected by this Act and anyother applicable rules of law. (Compare "Agreement".)
(12) "Creditor" includes a general creditor, a secured creditor,a lien creditor and any representative of creditors, including anassignee for the benefit of creditors, a trustee in bankruptcy, areceiver in equity, and an executor or administrator of aninsolvent debtor's or assignor's estate.
(13) "Defendant" includes a person in the position of defendantin a cross-action or counterclaim.
(14) "Delivery" means the following:
(A) With respect to an electronic document of title,voluntary transfer of control.
(B) With respect to instruments, tangible documents of title,chattel paper, or certificated securities, voluntary transfer ofpossession.
(15) "Document of title" means a record that:
(A) in the regular course of business or financing, is treatedas adequately evidencing that the person in possession orcontrol of the record is entitled to receive, control, hold, anddispose of the record and the goods it covers; and
(B) purports to be issued by or addressed to a bailee andpurports to cover goods in the bailee's possession which areeither identified or are fungible portions of an identifiedmass.
The term includes a bill of lading, transport document, dockwarrant, dock receipt, warehouse receipt, or order for deliveryof goods. An electronic document of title means a document oftitle evidenced by a record consisting of information stored inan electronic medium. A tangible document of title means adocument of title evidenced by a record consisting ofinformation that is inscribed on a tangible medium.
(16) "Fault" means wrongful act, omission, or breach.
(17) "Fungible" with respect to goods or securities means goodsor securities of which any unit is, by nature or usage of trade,the equivalent of any other like unit. Goods which are notfungible shall be deemed fungible for the purposes of IC 26-1to the extent that under a particular agreement or documentunlike units are treated as equivalents. (18) "Genuine" means free of forgery or counterfeiting.
(19) "Good faith", except as otherwise provided by IC 26-1-4 orIC 26-1-5.1, means honesty in fact and the observance ofreasonable commercial standards of fair dealing.
(20) "Holder" means:
(A) the person in possession of a negotiable instrument thatis payable either to bearer or to an identified person if theidentified person is in possession of the instrument;
(B) the person in possession of a negotiable tangibledocument of title if the goods are deliverable either to beareror to the order of the person in possession; or
(C) the person in control of a negotiable electronic documentof title.
(21) To "honor" is to pay or to accept and pay or where a creditso engages to purchase or discount a draft complying with theterms of the credit.
(22) "Insolvency proceedings" includes any assignment for thebenefit of creditors or other proceedings intended to liquidateor rehabilitate the estate of the person involved.
(23) A person is "insolvent" who either has ceased to pay theperson's debts in the ordinary course of business or cannot paythe person's debts as they become due or is insolvent within themeaning of the federal bankruptcy law.
(24) "Money" means a medium of exchange authorized oradopted by a domestic or foreign government and includes amonetary unit of account established by an intergovernmentalorganization or by agreement between two (2) or more nations.
(25) A person has "notice" of a fact when:
(a) the person has actual knowledge of it;
(b) the person has received a notice or notification of it; or
(c) from all the facts and circumstances known to the personat the time in question, the person has reason to know that itexists.
A person "knows" or has "knowledge" of a fact when the personhas actual knowledge of it. "Discover" or "learn" or a word orphrase of similar import refers to knowledge rather than toreason to know. The time and circumstances under which anotice or notification may cease to be effective are notdetermined by IC 26-1.
(26) A person "notifies" or "gives" a notice or notification toanother by taking such steps as may be reasonably required toinform the other in ordinary course whether or not such otheractually comes to know of it. A person "receives" a notice ornotification when:
(a) it comes to the person's attention; or
(b) it is duly delivered at the place of business through whichthe contract was made or at any other place held out by theperson as the place for receipt of such communications.
(27) Notice, knowledge, or a notice of notification received byan organization is effective for a particular transaction from the
time when it is brought to the attention of the individualconducting that transaction and, in any event, from the timewhen it would have been brought to the person's attention if theorganization had exercised due diligence. An organizationexercises due diligence if it maintains reasonable routines forcommunicating significant information to the person conductingthe transaction and there is reasonable compliance with theroutines. Due diligence does not require an individual acting forthe organization to communicate information unless suchcommunication is part of the person's regular duties or unlessthe person has reason to know of the transaction and that thetransaction would be materially affected by the information.
(28) "Organization" includes a corporation, government orgovernmental subdivision or agency, business trust, estate, trust,partnership or association, two (2) or more persons having ajoint or common interest, or any other legal or commercialentity.
(29) "Party", as distinct from "third party", means a person whohas engaged in a transaction or made an agreement withinIC 26-1.
(30) "Person" includes an individual or an organization. (SeeIC 26-1-1-102.)
(31) "Presumption" or "presumed" means that the trier of factmust find the existence of the fact presumed unless and untilevidence is introduced which would support a finding of itsnonexistence.
(32) "Purchase" includes taking by sale, discount, negotiation,mortgage, pledge, lien, security interest, issue or reissue, gift, orany other voluntary transaction creating an interest in property.
(33) "Purchaser" means a person who takes by purchase.
(33a) "Registered mail" includes certified mail.
(33b) "Record", except as used in IC 26-1-1.5-2 andIC 26-1-2.1-309, means information that is inscribed on atangible medium or that is stored in an electronic or othermedium and is retrievable in perceivable form.
(34) "Remedy" means any remedial right to which an aggrievedparty is entitled with or without resort to a tribunal.
(35) "Representative" includes an agent, an officer of acorporation or association, and a trustee, executor, oradministrator of an estate, or any other person empowered to actfor another.
(36) "Rights" includes remedies.
(37) "Security interest" means an interest in personal propertyor fixtures which secures payment or performance of anobligation. The term also includes any interest of a consignorand a buyer of accounts, chattel paper, a payment intangible, ora promissory note in a transaction that is subject to IC 26-1-9.1.The special property interest of a buyer of goods onidentification of such goods to a contract for sale underIC 26-1-2-401 is not a security interest, but a buyer may also
acquire a security interest by complying with IC 26-1-9.1.Except as otherwise provided in IC 26-1-2-505, the right of aseller or lessor of goods under IC 26-1-2 or IC 26-1-2.1 to retainor acquire possession of the goods is not a "security interest",but a seller or lessor may also acquire a "security interest" bycomplying with IC 26-1-9.1. The retention or reservation of titleby a seller of goods notwithstanding shipment or delivery to thebuyer (IC 26-1-2-401) is limited in effect to a reservation of a"security interest". Whether a transaction creates a lease orsecurity interest is determined by the facts of each case.However, a transaction creates a security interest if theconsideration the lessee is to pay the lessor for the right topossession and use of the goods is an obligation for the term ofthe lease not subject to termination by the lessee and:
(a) the original term of the lease is equal to or greater thanthe remaining economic life of the goods;
(b) the lessee is bound to renew the lease for the remainingeconomic life of the goods or is bound to become the ownerof the goods;
(c) the lessee has an option to renew the lease for theremaining economic life of the goods for no additionalconsideration or nominal additional consideration uponcompliance with the lease agreement; or
(d) the lessee has an option to become the owner of thegoods for no additional consideration or nominal additionalconsideration upon compliance with the lease agreement.
A transaction does not create a security interest merely becauseit provides that:
(a) the present value of the consideration the lessee isobligated to pay the lessor for the right to possession and useof the goods is substantially equal to or is greater than thefair market value of the goods at the time the lease is enteredinto;
(b) the lessee assumes risk of loss of the goods, or agrees topay taxes, insurance, filing, recording, or registration fees,or service or maintenance costs with respect to the goods;
(c) the lessee has an option to renew the lease or to becomethe owner of the goods;
(d) the lessee has an option to renew the lease for a fixedrent that is equal to or greater than the reasonablypredictable fair market rent for the use of the goods for theterm of the renewal at the time the option is to be performed;or
(e) the lessee has an option to become the owner of thegoods for a fixed price that is equal to or greater than thereasonably predictable fair market value of the goods at thetime the option is to be performed.
For purposes of this subsection:
(x) Additional consideration is not nominal if:
(i) when the option to renew the lease is granted to the
lessee the rent is stated to be the fair market rent for theuse of the goods for the term of the renewal determined atthe time the option is to be performed; or
(ii) when the option to become the owner of the goods isgranted to the lessee the price is stated to be the fairmarket value of the goods determined at the time theoption is to be performed.
Additional consideration is nominal if it is less than thelessee's reasonably predictable cost of performing under thelease agreement if the option is not exercised.
(y) "Reasonably predictable" and "remaining economic lifeof the goods" are to be determined with reference to the factsand circumstances at the time the transaction is entered into.
(z) "Present value" means the amount as of a date certain ofone (1) or more sums payable in the future, discounted to thedate certain. The discount is determined by the interest ratespecified by the parties if the rate is not manifestlyunreasonable at the time the transaction is entered into.Otherwise, the discount is determined by a commerciallyreasonable rate that takes into account the facts andcircumstances of each case at the time the transaction wasentered into.
(38) "Send" in connection with any writing or notice means todeposit in the mail or deliver for transmission by any otherusual means of communication with postage or cost oftransmission provided for and properly addressed and, in thecase of an instrument, to an address specified thereon orotherwise agreed or, if there be none, to any address reasonableunder the circumstances. The receipt of any writing or noticewithin the time at which it would have arrived if properly senthas the effect of a proper sending.
(39) "Signed" includes any symbol executed or adopted by aparty with present intention to authenticate a writing.
(40) "Surety" includes guarantor.
(41) "Telegram" includes a message transmitted by radio,teletype, cable, any mechanical method of transmission, or thelike.
(42) "Term" means that portion of an agreement which relatesto a particular matter.
(43) "Unauthorized" signature means one made without actual,implied, or apparent authority and includes a forgery.
(44) "Value". Except as otherwise provided with respect tonegotiable instruments and bank collections (IC 26-1-3.1-303,IC 26-1-4-208, and IC 26-1-4-209) a person gives value forrights if the person acquires them:
(a) in return for a binding commitment to extend credit or forthe extension of immediately available credit whether or notdrawn upon and whether or not a chargeback is provided forin the event of difficulties in collection;
(b) as security for or in total or partial satisfaction of a
preexisting claim;
(c) by accepting delivery pursuant to a preexisting contractfor purchase; or
(d) generally, in return for any consideration sufficient tosupport a simple contract.
(45) "Warehouse receipt" means a document of title issued bya person engaged in the business of storing goods for hire.
(46) "Written" or "writing" includes printing, typewriting, orany other intentional reduction to tangible form.
(Formerly: Acts 1963, c.317, s.1-201.) As amended by P.L.93-1985,SEC.3; P.L.120-1987, SEC.46; P.L.3-1990, SEC.93; P.L.189-1991,SEC.2; P.L.222-1993, SEC.1; P.L.57-2000, SEC.12; P.L.143-2007,SEC.3; P.L.135-2009, SEC.1.
IC 26-1-1-202
Prima facie evidence by third party documents
Sec. 202. A document in due form purporting to be a bill oflading, policy or certificate of insurance, official weigher's orinspector's certificate, consular invoice, or any other documentauthorized or required by the contract to be issued by a third partyshall be prima facie evidence of its own authenticity and genuinenessand of the facts stated in the document by the third party.
(Formerly: Acts 1963, c.317, s.1-202.)
IC 26-1-1-203
Obligation of good faith
Sec. 203. Every contract or duty within IC 26-1 imposes anobligation of good faith in its performance or enforcement.
(Formerly: Acts 1963, c.317, s.1-203.) As amended by P.L.152-1986,SEC.116.
IC 26-1-1-204
Time; reasonable time; "seasonably"
Sec. 204. (1) Whenever IC 26-1 requires any action to be takenwithin a reasonable time, any time which is not manifestlyunreasonable may be fixed by agreement.
(2) What is a reasonable time for taking any action depends on thenature, purpose, and circumstances of such action.
(3) An action is taken "seasonably" when it is taken at or withinthe time agreed or, if no time is agreed, at or within a reasonabletime.
(Formerly: Acts 1963, c.317, s.1-204.) As amended by P.L.152-1986,SEC.117.
IC 26-1-1-205
Course of dealing, course of performance, and usage of trade
Sec. 205. (1) A course of dealing is a sequence of previousconduct between the parties to a particular transaction which is fairlyto be regarded as establishing a common basis of understanding forinterpreting their expressions and other conduct. (2) A course of performance is a sequence of conduct between theparties to a particular transaction that exists if the:
(a) agreement of the parties with respect to the transactioninvolves repeated occasions for performance by a party; and
(b) other party, with knowledge of the nature of theperformance and opportunity for objection to it, accepts theperformance or acquiesces in it without objection.
(3) A usage of trade is any practice or method of dealing havingsuch regularity of observance in a place, vocation or trade as tojustify an expectation that it will be observed with respect to thetransaction in question. The existence and scope of such a usage areto be proved as facts. If it is established that such a usage isembodied in a written trade code or similar writing the interpretationof the writing is for the court.
(4) A course of dealing or course of performance between partiesand any usage of trade in the vocation or trade in which they areengaged or of which they are or should be aware give particularmeaning to and supplement or qualify terms of an agreement.
(5) Except as provided in subsection (8), the express terms of anagreement and an applicable course of dealing, course ofperformance, or usage of trade shall be construed whereverreasonable as consistent with each other. If such a construction isunreasonable:
(a) express terms prevail over course of dealing and course ofperformance;
(b) course of performance prevails over course of dealing andusage of trade; and
(c) course of dealing prevails over usage of trade.
(6) An applicable usage of trade in the place where any part ofperformance is to occur shall be used in interpreting the agreementas to that part of the performance.
(7) Evidence of a relevant usage of trade offered by one party isnot admissible unless and until the party has given the other partysuch notice as the court finds sufficient to prevent unfair surprise tothe latter.
(8) Subject to IC 26-1-2-209, a course of performance is relevantto show a waiver or modification of any term inconsistent with thecourse of performance.
(Formerly: Acts 1963, c.317, s.1-205.) As amended by P.L.143-2007,SEC.4.
IC 26-1-1-206
Statute of frauds for kinds of personal property not otherwisecovered
Sec. 206. (1) Except in the cases described in subsection (2), acontract for the sale of personal property is not enforceable by wayof action or defense beyond five thousand dollars ($5,000) in amountor value of remedy unless there is some writing which indicates thata contract for sale has been made between the parties at a defined orstated price, reasonably identifies the subject matter, and is signed by
the party against whom enforcement is sought or by his authorizedagent.
(2) Subsection (1) does not apply to contracts for the sale of goods(IC 26-1-2-201) nor to security agreements (IC 26-1-9.1-201).
(Formerly: Acts 1963, c.317, s.1-206.) As amended by P.L.152-1986,SEC.118; P.L.247-1995, SEC.2; P.L.57-2000, SEC.13.
IC 26-1-1-207
Performance or acceptance under reservation of rights
Sec. 207. (1) A party who, with explicit reservation of rights,performs or promises performance or assents to performance in amanner demanded or offered by the other party does not therebyprejudice the rights reserved. Such words as "without prejudice","under protest" or the like are sufficient.
(2) Subsection (1) does not apply to an accord and satisfaction.
(Formerly: Acts 1963, c.317, s.1-207.) As amended by P.L.222-1993,SEC.2.
IC 26-1-1-208
Option to accelerate at will
Sec. 208. A term providing that one party or his successor ininterest may accelerate payment or performance or require collateralor additional collateral "at will" or "when he deems himself insecure"or in words of similar import shall be construed to mean that he shallhave power to do so only if he in good faith believes that theprospect of payment or performance is impaired. The burden ofestablishing lack of good faith is on the party against whom thepower has been exercised.
(Formerly: Acts 1963, c.317, s.1-208.)
IC 26-1-1-301
Choice of law
Sec. 301. (1) Except as otherwise provided in this section, if atransaction bears a reasonable relation to Indiana and also to anotherstate or nation, the parties may agree that the law either of Indiana orof the other state or nation shall govern their rights and duties.
(2) In the absence of an agreement under subsection (1), andexcept as provided in subsection (3), IC 26-1 applies to transactionsbearing an appropriate relation to Indiana.
(3) If any of the following provisions specifies the applicable law,that provision governs, and a contrary agreement is effective only tothe extent permitted by the law so specified:
(a) IC 26-1-2-402.
(b) IC 26-1-2.1-105 and IC 26-1-2.1-106.
(c) IC 26-1-4-102.
(d) IC 26-1-4.1-507.
(e) IC 26-1-5.1-116.
(f) IC 26-1-8.1-110.
(g) IC 26-1-9.1-301 through IC 26-1-9.1-307.
As added by P.L.143-2007, SEC.5.
IC 26-1-1-302
Subordination
Sec. 302. (1) An obligation may be issued as subordinated toperformance of another obligation of the person obligated, or acreditor may subordinate the creditor's right to performance of anobligation by agreement with either the person obligated or anothercreditor of the person obligated.
(2) Subordination does not create a security interest as againsteither the common debtor or a subordinated creditor.
As added by P.L.143-2007, SEC.6.