HRS §490:1-310
What it means to make a debt lower priority
Read the official text at capitol.hawaii.gov ↗This section says a debt can be made lower priority than another debt of the same person, either when it is issued or by a creditor agreeing to step back. This lower priority does not create a security interest against the debtor or other creditors.
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The statute, as written — Subordinated obligations
A copy, taken August 20, 2026. The version published by the Legislature is the one that governs, and it may have changed since. Check it before relying on anything here.
An obligation may be issued as subordinated to performance of another obligation of the person obligated, or a creditor may subordinate its right to performance of an obligation by agreement with either the person obligated or another creditor of the person obligated. Subordination does not create a security interest as against either the common debtor or a subordinated creditor.
LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.