N.Y. Uniform Commercial Code Law § 9-627: Determination of Whether Conduct Was Commercially Reasonable

Section 9--627. Determination of Whether Conduct Was Commercially

Reasonable.

(a) Greater amount obtainable under other circumstances; no preclusion

of commercial reasonableness. The fact that a greater amount could have

been obtained by a collection, enforcement, disposition, or acceptance

at a different time or in a different method from that selected by the

secured party is not of itself sufficient to preclude the secured party

from establishing that the collection, enforcement, disposition, or

acceptance was made in a commercially reasonable manner.

(b) Dispositions that are commercially reasonable. A disposition of

collateral is made in a commercially reasonable manner if the

disposition is made:

(1) in the usual manner on any recognized market;

(2) at the price current in any recognized market at the time of

the disposition; or

(3) otherwise in conformity with reasonable commercial practices

among dealers in the type of property that was the subject of

the disposition.

(c) Approval by court or on behalf of creditors. A collection,

enforcement, disposition, or acceptance is commercially reasonable if it

has been approved:

(1) in a judicial proceeding;

(2) by a bona fide creditors' committee;

(3) by a representative of creditors; or

(4) by an assignee for the benefit of creditors.

(d) Approval under subsection (c) not necessary; absence of approval

has no effect. Approval under subsection (c) need not be obtained, and

lack of approval does not mean that the collection, enforcement,

disposition, or acceptance is not commercially reasonable.