N.Y. Uniform Commercial Code Law § 9-208: 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 a signed 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 a signed record 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 under

Section 9--105 of an authoritative electronic copy of a

record evidencing chattel paper shall transfer control of the

electronic copy to debtor or a person designated by the

debtor;

(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

a signed 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;

(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 a signed release from

any further obligation to pay or deliver proceeds of the

letter-of-credit to the secured party;

(6) a secured party having control under Section 7--106 of an

authoritative electronic copy of an electronic document of

title shall transfer control of the electronic copy to the

debtor or a person designated by the debtor;

(7) a secured party having control under Section 9--105A of

electronic money shall transfer control of the electronic

money to the debtor or a person designated by the debtor; and

(8) a secured party having control under Section 12--105 of a

controllable electronic record, other than a buyer of a

controllable account or controllable payment intangible

evidenced by the controllable electronic record, shall

transfer control of the controllable electronic record to the

debtor or a person designated by the debtor.