N.Y. Uniform Commercial Code Law § 9-610: Disposition of Collateral after Default

Section 9--610. Disposition of Collateral after Default.

(a) Disposition after default. After default, a secured party may

sell, lease, license, or otherwise dispose of any or all of the

collateral in its present condition or following any commercially

reasonable preparation or processing.

(b) Commercially reasonable disposition. Every aspect of a disposition

of collateral, including the method, manner, time, place, and other

terms, must be commercially reasonable. If commercially reasonable, a

secured party may dispose of collateral by public or private

proceedings, by one or more contracts, as a unit or in parcels, and at

any time and place and on any terms.

(c) Purchase by secured party. A secured party may purchase

collateral:

(1) at a public disposition; or

(2) at a private disposition only if the collateral is of a kind

that is customarily sold on a recognized market or the

subject of widely distributed standard price quotations.

(d) Warranties on disposition. A contract for sale, lease, license, or

other disposition includes the warranties relating to title, possession,

quiet enjoyment, and the like which by operation of law accompany a

voluntary disposition of property of the kind subject to the contract.

(e) Disclaimer of warranties. A secured party may disclaim or modify

warranties under subsection (d):

(1) in a manner that would be effective to disclaim or modify the

warranties in a voluntary disposition of property of the kind

subject to the contract of disposition; or

(2) by communicating to the purchaser a record evidencing the

contract for disposition and including an express disclaimer

or modification of the warranties.

(f) Record sufficient to disclaim warranties. A record is sufficient

to disclaim warranties under subsection (e) if it indicates "There is no

warranty relating to title, possession, quiet enjoyment, or the like in

this disposition" or uses words of similar import.