N.Y. Uniform Commercial Code 9-621 – Notification of Proposal to Accept Collateral
Section 9–621. Notification of Proposal to Accept Collateral.
Terms Used In N.Y. Uniform Commercial Code 9-621
- Lien: A claim against real or personal property in satisfaction of a debt.
- 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.
- Statute: A law passed by a legislature.
(a) Persons to which proposal to be sent. A secured party that desires to accept collateral in full or partial satisfaction of the obligation it secures shall send its proposal to:
(1) any person from which the secured party has received, before
the debtor consented to the acceptance, an authenticated
notification of a claim of an interest in the collateral;
(2) any other secured party or lienholder that, 10 days before
the debtor consented to the acceptance, held a security
interest in or other lien on the collateral perfected by the
filing of a financing statement that:
(A) identified the collateral;
(B) was indexed under the debtor's name as of that date; and
(C) was filed in the office or offices in which to file a
financing statement against the debtor covering the
collateral as of that date; and
(3) any other secured party that, 10 days before the debtor
consented to the acceptance, held a security interest in the
collateral perfected by compliance with a statute,
regulation, or treaty described in Section 9–311(a).
(b) Proposal to be sent to secondary obligor in partial satisfaction. A secured party that desires to accept collateral in partial satisfaction of the obligation it secures shall send its proposal to any secondary obligor in addition to the persons described in subsection (a).