2006 New York Code - Additional Duties Of Secured Party Having Control Of Collateral.

 
  Section 9--208. Additional  Duties  of  Secured  Party Having Control of
                    Collateral.
    (a) Applicability of section. This section applies to cases  in  which
  there  is no outstanding secured obligation and the secured party is not
  committed to make advances, incur obligations, or otherwise give value.
    (b) Duties of secured party after receiving demand from debtor. Within
  10 days after receiving an authenticated demand by the debtor:
         (1) a secured party having control of  a  deposit  account  under
             Section  9--104(a)(2)  shall  send to the bank with which the
             deposit account is maintained an authenticated statement that
             releases the bank from any further obligation to comply  with
             instructions originated by the secured party;
         (2) a  secured  party  having  control of a deposit account under
             Section 9--104(a)(3) shall:
             (A) pay the debtor the balance  on  deposit  in  the  deposit
                 account; or
             (B) transfer the balance on deposit into a deposit account in
                 the debtor's name;
         (3) a  secured  party,  other  than  a  buyer,  having control of
             electronic chattel paper under Section 9--105 shall:
             (A) communicate the  authoritative  copy  of  the  electronic
                 chattel paper to the debtor or its designated custodian;
             (B) if   the  debtor  designates  a  custodian  that  is  the
                 designated custodian with which the authoritative copy of
                 the  electronic  chattel  paper  is  maintained  for  the
                 secured   party,   communicate   to   the   custodian  an
                 authenticated record releasing the  designated  custodian
                 from  any  further obligation to comply with instructions
                 originated by  the  secured  party  and  instructing  the
                 custodian  to  comply with instructions originated by the
                 debtor; and
             (C) take appropriate action  to  enable  the  debtor  or  its
                 designated  custodian  to  make copies of or revisions to
                 the authoritative copy which add or change an  identified
                 assignee of the authoritative copy without the consent of
                 the secured party;
         (4) a  secured  party having control of investment property under
             Section  8--106(d)(2)  or  9--106(b)  shall   send   to   the
             securities  intermediary or commodity intermediary with which
             the security entitlement or commodity contract is  maintained
             an   authenticated   record   that  releases  the  securities
             intermediary  or  commodity  intermediary  from  any  further
             obligation  to  comply  with entitlement orders or directions
             originated by the secured party; and
         (5) a secured party having control of  a  letter-of-credit  right
             under  Section  9--107  shall  send  to each person having an
             unfulfilled obligation to pay  or  deliver  proceeds  of  the
             letter-of-credit   to  the  secured  party  an  authenticated
             release  from  any  further  obligation  to  pay  or  deliver
             proceeds of the letter-of-credit to the secured party.