N.Y. Uniform Commercial Code Law § 9-607: 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 with respect to the obligation

secured by the mortgage; 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.