N.Y. UCC Law § 9-611 — New York Code / Act UCC / Article 9 / Part 6 / Subpart 1 / Section 9-611
Notification Before Disposition of Collateral
Status: in_force

Section 9--611. Notification Before Disposition of Collateral.\n  (a) "Notification date." In this section, "notification date" means\nthe earlier of the date on which:\n       (1) a secured party sends to the debtor and any secondary obligor\n           a signed notification of disposition; or\n       (2) the debtor and any secondary obligor waive the right to\n           notification.\n  (b) Notification of disposition required. Except as otherwise provided\nin subsection (d), a secured party that disposes of collateral under\nSection 9--610 shall send to the persons specified in subsection (c) a\nreasonable signed notification of disposition.\n  (c) Persons to be notified. To comply with subsection (b), the secured\nparty shall send a signed notification of disposition to:\n       (1) the debtor;\n       (2) any secondary obligor; and\n       (3) if the collateral is other than consumer goods:\n           (A) any other person from which the secured party has\n               received, before the notification date, a signed\n               notification of a claim of an interest in the collateral;\n           (B) any other secured party or lienholder that, 10 days\n               before the notification date, held a security interest in\n               or other lien on the collateral perfected by the filing\n               of a financing statement that:\n               (i) identified the collateral;\n               (ii) was indexed under the debtor's name as of that date;\n                    and\n               (iii) was filed in the office in which to file a\n                     financing statement against the debtor covering the\n                     collateral as of that date; and\n           (C) any other secured party that, 10 days before the\n               notification date, held a security interest in the\n               collateral perfected by compliance with a statute,\n               regulation, or treaty described in Section 9--311(a).\n  (d) Subsection (b) inapplicable: perishable collateral; recognized\nmarket. Subsection (b) does not apply if the collateral is perishable or\nthreatens to decline speedily in value or is of a type customarily sold\non a recognized market.\n  (e) Compliance with subsection (c) (3) (B). A secured party complies\nwith the requirement for notification prescribed by subsection (c)\n(3) (B) if:\n       (1) not later than twenty days or earlier than thirty days before\n           the notification date, the secured party requests, in a\n           commercially reasonable manner, information concerning\n           financing statements indexed under the debtor's name in the\n           office indicated in subsection (c) (3) (B); and\n       (2) before the notification date, the secured party:\n           (A) did not receive a response to the request for\n               information; or\n           (B) received a response to the request for information and\n               sent a signed notification of disposition to each secured\n               party or other lienholder named in that response whose\n               financing statement covered the collateral.\n  (f) Additional pre-disposition notice for cooperative interests.\n  (1) In addition to such other notification as may be required pursuant\nto subsection (b) of this section and section 9-613 of this article, a\nsecured party whose collateral consists of a residential cooperative\ninterest used by the debtor and whose security interest in such\ncollateral secures an obligation incurred in connection with financing\nor refinancing of the acquisition of such cooperative interest and who\nproposes to dispose of such collateral after a default with respect to\nsuch obligation, shall send to the debtor, not less than ninety days\nprior to the date of the disposition of the cooperative interest, an\nadditional pre-disposition notice as provided herein.\n  (1-a) Notwithstanding any other provision of law, with regard to a\nreverse cooperative apartment unit loan, at least forty-five days before\na secured party, as defined under Section 9-102(a)(73), or its agent\ntakes any steps to dispose of its collateral, as provided for in Section\n9-610, the secured party or its agent shall give notice to the borrower,\nand separate notice to the borrower's designated third-party if one has\nbeen designated in at least fourteen-point type except for the heading\nwhich shall be in at least sixteen-point type. The notice shall include\nthe following:\n  YOU COULD LOSE YOUR COOPERATIVE APARTMENT UNIT TO FORECLOSURE. PLEASE\n                  READ THE FOLLOWING NOTICE CAREFULLY.\nDate\nBorrower's address\nLoan Number:\nProperty Address:\nDear Borrower(s) {or heirs of Debtor?}:\nAs of ___________, your reverse cooperative apartment unit loan is in\ndefault. Under New York State Law, we are required to send you this\nnotice to inform you that you may be at risk of losing your home.\nYour reverse loan is in default because you have not complied with the\nfollowing conditions of your loan:\n_____ You are not occupying your cooperative apartment unit as your\nprimary residence\n_____ You did not submit the required annual certificate of occupancy\n_____ The named borrower on the reverse loan has died\n_____ You did not pay maintenance on your unit to the cooperative\ncorporation, and {servicer} paid your maintenance for you on the\nfollowing date(s) in the following\namount(s):________________________________\n____________________________________\n_____ You did not make required repairs to your unit\nIf the claim is based on your failure to pay maintenance to the\ncooperative corporation, you can cure this default by making the payment\nof $____________ for the advances we made towards these payments on your\nbehalf.\nYou have the right to dispute the claims listed above by contacting us,\nby calling ___________ or sending a letter to __________________. This\nmay include proof of payments made for water and sewer charges or a\ncurrent declaration page from your insurance company, or any other proof\nto dispute the servicer's claim.\nOPTIONS MAY BE AVAILABLE FOR YOU TO CURE YOUR DEFAULT. SOME OF THESE\nOPTIONS ARE LISTED BELOW. YOU MAY CONTACT {SERVICER} AT {TOLL-FREE\nNUMBER} TO DISCUSS YOUR OPTIONS.\nIf you are in default for failure to pay maintenance, you may qualify\nfor a re-payment plan to cure the default balance owed.\nAttached to this notice is a list of New York approved housing\ncounseling agencies and legal services in your area which provide free\ncounseling. A statewide listing by county is also available at\nhttps://www.dfs.ny.gov/consumers/\nhelp_for_homeowners/new_york_state_non-\nprofit_housing_counseling_agencies. You may also call your local\nDepartment of Aging for a referral or call 311 if you live in New York\nCity.\nQualified free help is available; watch out for companies or people who\ncharge a fee for these services.\nYou may also contact {SERVICER} directly at __________ and ask to\ndiscuss all possible options to allow you to cure your default and\nprevent the foreclosure of your home. While we cannot ensure that a\nresolution is possible, we encourage you to take immediate steps to try\nto achieve a resolution. The longer you wait, the fewer options you may\nhave.\nIf you have not taken any actions to resolve this matter within ninety\ndays from the date this notice was mailed, we will have the right to\ntake your cooperative shares from you.\nIf you need further information, please call the New York State\nDepartment of Financial Services' toll-free helpline at 877-226-5697 or\nvisit the Department's website at http://www.dfs.ny.gov.\nIMPORTANT: You have the right to remain in your unit until you receive a\ncourt order telling you to leave the property. If a foreclosure action\nis filed against you in court, you still have the right to remain in the\nunit until a court orders you to leave. You legally remain the owner of\nyour cooperative shares and are responsible for the unit until the\nshares are transferred to a new owner through a sale. However, there\nwill be no court proceeding before the shares are transferred to a new\nowner. After the shares are transferred, the new owner may begin a court\nproceeding to evict you from the unit.\nThis notice is not an eviction notice.\n  (2) The notice required by this subsection shall be in bold,\nfourteen-point type and shall be printed on colored paper that is other\nthan the color of the notice required by subsection (b) of this section,\nand the title of the notice shall be in bold, twenty-point type. The\nnotice shall be on its own page.\n  (3) The notice required by this subsection shall appear as follows:\n               Help for Homeowners at Risk of Foreclosure\nNew York State Law requires that we send you this information about the\nforeclosure process. Please read it carefully.\nNotice\n  You are in danger of losing your home. You are in default of your\nobligations under the loan secured by your rights to your cooperative\napartment. It is important that you take action, if you wish to avoid\nlosing your home.\nSources of Information and Assistance\n  The State encourages you to become informed about your options, by\nseeking assistance from an attorney, a legal aid office, or a government\nagency or non-profit organization that provides counseling with respect\nto home foreclosures.\n  To locate a housing counselor near you, you may call the toll-free\nhelpline maintained by the New York State Department of Financial\nServices at                    (enter number) or visit the Department's\nwebsite at                (enter web address).\nOne of these persons or organizations may be able to help you, including\ntrying to work with your lender to modify the loan to make it more\naffordable.\nForeclosure rescue scams\n  Be careful of people who approach you with offers to "save" your home.\nThere are individuals who watch for notices of foreclosure actions or\ncollateral sales in order to unfairly profit from a homeowner's\ndistress. You should be extremely careful about any such promises and\nany suggestions that you pay them a fee or sign any papers that transfer\nrights of any kind to your cooperative apartment. State law requires\nanyone offering such services for profit to enter into a contract which\nfully describes the services they will perform and fees they will\ncharge, and which prohibits them from taking any money from you until\nthey have completed all such promised services.\n  (4) The department of financial services shall prescribe the telephone\nnumber and web address to be included in the notice.\n  (5) The department of financial services shall post on its website or\notherwise make readily available the name and contact information of\ngovernment agencies or non-profit organizations that may be contacted\nfor information about the foreclosure process, including maintaining a\ntoll-free helpline to disseminate the information required by this\nsubsection.\n