NY UCC § 9-620 (2021)
2021 New York Laws UCC - Uniform Commercial Code Article 9 - Secured Transactions Part 6 - Default Sub Part 1 - Default and Enforcement of Security Interest 9-620 - Acceptance of Collateral in Full or Partial Satisfaction of Obligation; Compulsory Disposition of Collateral

Section 9--620. Acceptance of Collateral in Full or Partial Satisfaction                  of Obligation; Compulsory Disposition of Collateral.  (a) Conditions  to  acceptance  in satisfaction.   Except as otherwise provided in  subsections  (g)  and  (h),  a  secured  party  may  accept collateral  in full or partial satisfaction of the obligation it secures only if:       (1) the debtor consents to the acceptance under subsection (c);       (2) the secured party does not receive, within the time set forth            in  subsection  (d),  a  notification  of  objection  to  the            proposal authenticated by:           (A) a  person to which the secured party was required to send                a proposal under Section 9--621; or           (B) any other person,  other  than  the  debtor,  holding  an                interest  in  the  collateral subordinate to the security                interest that is the subject of the proposal;       (3) if the collateral is consumer goods, the collateral is not in            the possession of the debtor when the debtor consents to  the            acceptance; and       (4) subsection  (e) does not require the secured party to dispose            of the  collateral  or  the  debtor  waives  the  requirement            pursuant to Section 9--624.  (b) Purported   acceptance   ineffective.   A  purported  or  apparent acceptance of collateral under this section is ineffective unless:       (1) the  secured  party  consents  to  the   acceptance   in   an            authenticated record or sends a proposal to the debtor; and       (2) the conditions of subsection (a) are met.  (c) Debtor's consent. For purposes of this section:       (1) a  debtor  consents to an acceptance of collateral in partial            satisfaction of the obligation it secures only if the  debtor            agrees   to   the   terms  of  the  acceptance  in  a  record            authenticated after default; and       (2) a debtor consents to an  acceptance  of  collateral  in  full            satisfaction  of the obligation it secures only if the debtor            agrees  to  the  terms  of  the  acceptance   in   a   record            authenticated after default or the secured party:           (A) sends  to  the  debtor  after  default a proposal that is                unconditional  or  subject  only  to  a  condition   that                collateral  not in the possession of the secured party be                preserved or maintained;           (B) in the proposal, proposes to accept  collateral  in  full                satisfaction of the obligation it secures; and           (C) does    not   receive   a   notification   of   objection                authenticated by the debtor within twenty days after  the                proposal is sent.  (d) Effectiveness  of  notification.  To be effective under subsection (a)(2), a notification of objection must  be  received  by  the  secured party:       (1) in  the  case  of  a  person  to  which the proposal was sent            pursuant to Section 9--621, within 20 days after notification            was sent to that person; and       (2) in other cases:           (A) within 20 days  after  the  last  notification  was  sent                pursuant to Section 9--621; or           (B) if  a  notification  was  not  sent,  before  the  debtor                consents to the acceptance under subsection (c).  (e) Mandatory disposition of consumer goods. A secured party that  has taken  possession of collateral shall dispose of the collateral pursuant to Section 9--610 within the time specified in subsection (f) if:       (1) sixty percent of the cash price has been paid in the case  of            a purchase-money security interest in consumer goods; or       (2) sixty  percent  of  the  principal  amount  of the obligation            secured has been paid in the  case  of  a  non-purchase-money            security interest in consumer goods.  (f) Compliance  with mandatory disposition requirement. To comply with subsection (e), the secured party shall dispose of the collateral:       (1) within 90 days after taking possession; or       (2) within  any  longer  period  to  which  the  debtor  and  all            secondary obligors have agreed in an agreement to that effect            entered into and authenticated after default.  (g) No  partial  satisfaction  in  consumer transaction. In a consumer transaction, a secured  party  may  not  accept  collateral  in  partial satisfaction of the obligation it secures.  (h)  Special  provisions  for  cooperative  interests. A secured party whose collateral consists of a residential cooperative interest used  by the  debtor  and  whose  security interest in such collateral secures an obligation incurred in connection with financing or refinancing  of  the acquisition  of such cooperative interest and who chooses to accept that cooperative interest in full satisfaction of the debtor's obligation may do so.  (1) If the secured party sends a  proposal  to  take  the  cooperative interest  in  full satisfaction of the debtor's obligation, the proposal shall be accompanied by a notice in the form and  manner  prescribed  in subsection  (f)  of  section  9-611  of this subpart, unless the secured party has previously sent the debtor such notice. A debtor  consents  to an  acceptance  of  a  cooperative  interest in full satisfaction of the obligation it secures only if the debtor agrees  to  the  terms  of  the proposal in a record authenticated after default.  (2)  A  debtor  may  propose  to  the  secured  party that it take the cooperative interest in full satisfaction of the obligation it  secures. The  proposal  shall be ineffective unless the secured party consents to the proposal in an authenticated record.