N.Y. Uniform Commercial Code Law § 9-604: 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).