Alabama § 7-9A-916 - Claim Subordination.
Full text of Alabama Code of Alabama § 7-9A-916 — Claim Subordination., with citation guidance and answers to common questions.
§ 7-9A-916. Claim Subordination.
(a) A subordination agreement is enforceable under this part to the same extent the agreement is enforceable under other law.
(b) Subject to subsection (c), 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:
(1) A claim arising from rescission of a purchase or sale of the security or other equity interest; and
(2) A claim for damages arising from the purchase or sale of the security or other equity interest or for reimbursement or contribution on the claim.
(c) If the security is common stock or another common equity interest, a claim subject to subordination under subsection (b) has the same priority as common stock or another common equity interest.
Frequently Asked Questions About Alabama § 7-9A-916
What does Code of Alabama § 7-9A-916 cover?
Section 7-9A-916 ("Claim Subordination.") is part of the Code of Alabama, the codified statutory law of Alabama. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Alabama § 7-9A-916?
A common citation format is "Code of Alabama § 7-9A-916" (Alabama). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Alabama law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Alabama official source linked on this page or consult a licensed Alabama attorney.
How does Alabama § 7-9A-916 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Alabama can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Alabama.