N.Y. Uniform Commercial Code Law § 9-621: Notification of Proposal to Accept Collateral

Section 9--621. Notification of Proposal to Accept Collateral.

(a) Persons to which proposal to be sent. A secured party that desires

to accept collateral in full or partial satisfaction of the obligation

it secures shall send its proposal to:

(1) any person from which the secured party has received, before

the debtor consented to the acceptance, an authenticated

notification of a claim of an interest in the collateral;

(2) any other secured party or lienholder that, 10 days before

the debtor consented to the acceptance, held a security

interest in or other lien on the collateral perfected by the

filing of a financing statement that:

(A) identified the collateral;

(B) was indexed under the debtor's name as of that date; and

(C) was filed in the office or offices in which to file a

financing statement against the debtor covering the

collateral as of that date; and

(3) any other secured party that, 10 days before the debtor

consented to the acceptance, held a security interest in the

collateral perfected by compliance with a statute,

regulation, or treaty described in Section 9--311(a).

(b) Proposal to be sent to secondary obligor in partial satisfaction.

A secured party that desires to accept collateral in partial

satisfaction of the obligation it secures shall send its proposal to any

secondary obligor in addition to the persons described in subsection

(a).