N.Y. Personal Property Law 421 – Security interest in other property
§ 421. Security interest in other property. Except as provided in section four hundred ten of this chapter, no retail instalment contract or obligation, or any other agreement executed in connection therewith, may provide for the creation of a security interest in any real or personal property, other than the goods which are the subject matter of the retail instalment sale, to secure the payment of the time sale price under such contract or obligation or any part thereof; provided, however, that the prohibition of this section shall not be applicable to the taking of a mortgage upon real property to secure the payment of the time sale price of a retail instalment obligation, if the transaction which gave rise to such obligation was the furnishing of goods or services for repairs, alterations or improvements upon, or in connection with buildings upon, such real property. Any such prohibited provision shall be void but shall not otherwise affect the validity of the contract or obligation.
Terms Used In N.Y. Personal Property Law 421
- Contract: A legal written agreement that becomes binding when signed.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Personal property: All property that is not real property.
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.