2012 New York Consolidated Laws
DCD - Debtor & Creditor
Article 3 - (50 - 88) INSOLVENT'S DISCHARGE FROM DEBTS
59 - Consenting creditor must relinquish security.

 
    §  59.  Consenting  creditor  must relinquish security. A creditor who
  has, in his own name, or in trust for  him,  a  mortgage,  judgment,  or
  other security, for the payment of a sum of money, which is a lien upon,
  or  otherwise  affects,  real  or  personal  property  belonging  to the
  petitioner, or transferred by him since the  lien  was  created,  cannot
  become  a  consenting  creditor,  with  respect  to the debt so secured,
  unless he adds to or includes in his  consent,  a  written  declaration,
  under  his  hand,  to  the  effect,  that  he relinquishes the mortgage,
  judgment, or other security, so far as it affects that property, to  the
  trustee to be appointed pursuant to the petition, for the benefit of all
  the  creditors.  Such  a  declaration  operates,  to  that extent, as an
  assignment to the trustee, of the mortgage, judgment, or other security;
  and vests  in  him  accordingly  all  the  right  and  interest  of  the
  consenting creditor therein.