2006 New York Code - Procedure If Security Agreement Covers Real Property, Fixtures, Or Cooperative Interests



 
  Section 9--604. Procedure  If  Security  Agreement Covers Real Property,
                    Fixtures, or Cooperative Interests.
    (a) Enforcement: personal and real property. If a  security  agreement
  covers both personal and real property, a secured party may proceed:
         (1) under   this   part  as  to  the  personal  property  without
             prejudicing any rights with respect to the real property; or
         (2) as to both the personal property and  the  real  property  in
             accordance with the rights with respect to the real property,
             in which case the other provisions of this part do not apply.
    (b) Enforcement:  fixtures.  Subject  to subsection (c), if a security
  agreement covers goods that are or become fixtures, a secured party  may
  proceed:
         (1) under this part; or
         (2) in  accordance with the rights with respect to real property,
             in which case the other provisions of this part do not apply.
    (c) Removal of fixtures. Subject to the other provisions of this part,
  if a secured party holding a security interest in fixtures has  priority
  over  all  owners  and  encumbrancers  of the real property, the secured
  party, after default, may remove the collateral from the real property.
    (d) Injury caused by removal. A secured party that removes  collateral
  shall promptly reimburse any encumbrancer or owner of the real property,
  other  than  the  debtor,  for the cost of repair of any physical injury
  caused by  the  removal.  The  secured  party  need  not  reimburse  the
  encumbrancer  or  owner for any diminution in value of the real property
  caused by the absence of the  goods  removed  or  by  any  necessity  of
  replacing them. A person entitled to reimbursement may refuse permission
  to  remove  until  the  secured  party  gives adequate assurance for the
  performance of the obligation to reimburse.
    (e) Enforcement: cooperative  interests.  A  security  interest  in  a
  cooperative  interest  may  be  enforced  only  as  provided  in Section
  9--601(a).

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