2006 New York Code - Collection And Enforcement By Secured Party



 
  Section 9--607. Collection and Enforcement by Secured Party.
    (a) Collection  and  enforcement  generally.  If so agreed, and in any
  event after default, a secured party:
         (1) may notify an account debtor or  other  person  obligated  on
             collateral to make payment or otherwise render performance to
             or for the benefit of the secured party;
         (2) may  take any proceeds to which the secured party is entitled
             under Section 9--315;
         (3) may enforce the obligations of an  account  debtor  or  other
             person obligated on collateral and exercise the rights of the
             debtor  with  respect to the obligation of the account debtor
             or other person obligated on collateral to  make  payment  or
             otherwise  render performance to the debtor, and with respect
             to any property that secures the obligations of  the  account
             debtor or other person obligated on the collateral;
         (4) if  it  holds  a  security  interest  in  a  deposit  account
             perfected by control under Section 9--104 (a) (1), may  apply
             the  balance of the deposit account to the obligation secured
             by the deposit account; and
         (5) if  it  holds  a  security  interest  in  a  deposit  account
             perfected by control under Section 9--104 (a) (2) or (3), may
             instruct  the  bank to pay the balance of the deposit account
             to or for the benefit of the secured party.
    (b) Nonjudicial enforcement of mortgage.  If  necessary  to  enable  a
  secured party to exercise under subsection (a) (3) the right of a debtor
  to enforce a mortgage nonjudicially, the secured party may record in the
  office in which a record of the mortgage is recorded:
         (1) a copy of the security agreement that creates or provides for
             a   security  interest  in  the  obligation  secured  by  the
             mortgage; and
         (2) the  secured  party's  sworn  affidavit  in  recordable  form
             stating that:
             (A) a default has occurred; and
             (B) the  secured  party  is  entitled to enforce the mortgage
                 nonjudicially.
    (c) Commercially reasonable  collection  and  enforcement.  A  secured
  party  shall  proceed in a commercially reasonable manner if the secured
  party:
         (1) undertakes to collect from or enforce  an  obligation  of  an
             account debtor or other person obligated on collateral; and
         (2) is   entitled   to  charge  back  uncollected  collateral  or
             otherwise to full or limited recourse against the debtor or a
             secondary obligor.
    (d) Expenses of collection and enforcement. A secured party may deduct
  from the collections made pursuant to subsection (c) reasonable expenses
  of collection and enforcement, including reasonable attorney's fees  and
  legal expenses incurred by the secured party.
    (e) Duties  to  secured  party  not  affected.  This  section does not
  determine whether an account debtor, bank, or other person obligated  on
  collateral owes a duty to a secured party.

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