2023 New York Laws › UCC - Uniform Commercial Code › Article 9 - Secured Transactions › Part 6 - Default › Sub Part 2 - Noncompliance With Article › 9-625 - Remedies for Secured Party's Failure to Comply With Article

Section 9--625. Remedies  for  Secured  Party's  Failure  to Comply with
Article.
(a) Judicial orders concerning noncompliance.  If  it  is  established
that  a secured party is not proceeding in accordance with this article,
a court may order or restrain collection, enforcement, or disposition of
collateral on appropriate terms and conditions.
(b) Damages for noncompliance. Subject to subsections  (c),  (d),  and
(f),  a person is liable for damages in the amount of any loss caused by
a failure to comply with this article.  Loss  caused  by  a  failure  to
comply may include loss resulting from the debtor's inability to obtain,
or increased costs of, alternative financing.
(c) Persons   entitled   to  recover  damages;  statutory  damages  if
collateral is consumer goods. Except as otherwise  provided  in  Section
9--628:
(1) a  person that, at the time of the failure, was a debtor, was
an obligor, or held a security interest in or other  lien  on
the  collateral  may recover damages under subsection (b) for
its loss; and
(2) if the collateral is consumer goods,  a  person  that  was  a
debtor  or  a  secondary  obligor at the time a secured party
failed to comply with this part may recover for that  failure
in  any  event  an  amount  not  less than the credit service
charge plus  10  percent  of  the  principal  amount  of  the
obligation  or the time-price differential plus 10 percent of
the cash price.
(d) Recovery when deficiency eliminated or  reduced.  A  debtor  whose
deficiency  is  eliminated  under Section 9--626 may recover damages for
the loss of any surplus. However, a debtor or  secondary  obligor  whose
deficiency  is  eliminated  or  reduced  under  Section  9--626  may not
otherwise recover  under  subsection  (b)  for  noncompliance  with  the
provisions   of   this   part   relating   to  collection,  enforcement,
disposition, or acceptance.
(e) Statutory damages: noncompliance  with  specified  provisions.  In
addition  to  any  damages recoverable under subsection (b), the debtor,
consumer obligor, or person named as a debtor  in  a  filed  record,  as
applicable,  may recover five hundred dollars in each case from a person
that:
(1) fails to comply with Section 9--208;
(2) fails to comply with Section 9--209;
(3) files a record that the person is not entitled to file  under
Section 9--509 (a);
(4) fails  to cause the secured party of record to file or send a
termination statement as required by Section 9--513 (a), (c),
or (e);
(5) fails to comply with Section 9--616 (b) (1) and whose failure
is part of a pattern,  or  consistent  with  a  practice,  of
noncompliance; or
(6) fails to comply with Section 9--616 (b) (2).
(f) Statutory  damages: noncompliance with Section 9--210. A debtor or
consumer obligor may  recover  damages  under  subsection  (b)  and,  in
addition,  five hundred dollars in each case from a person that, without
reasonable cause, fails to comply with a request under Section 9--210. A
recipient of a request under  Section  9--210  which  never  claimed  an
interest  in  the  collateral  or  obligations that are the subject of a
request under that section has a reasonable excuse for failure to comply
with the request within the meaning of this subsection.
(g) Limitation  of  security  interest:  noncompliance  with   Section
9--210.    If a secured party fails to comply with a request regarding a

list of collateral or a statement of account under Section  9--210,  the
secured party may claim a security interest only as shown in the list or
statement included in the request as against a person that is reasonably
misled by the failure.