2023 New York Laws › UCC - Uniform Commercial Code › Article 9 - Secured Transactions › Part 6 - Default › Sub Part 1 - Default and Enforcement of Security Interest › 9-611 - Notification Before Disposition of Collateral

Section 9--611. Notification Before Disposition of Collateral.
(a) "Notification  date."  In  this section, "notification date" means
the earlier of the date on which:
(1) a secured party sends to the debtor and any secondary obligor
an authenticated notification of disposition; or
(2) the debtor and any  secondary  obligor  waive  the  right  to
notification.
(b) Notification of disposition required. Except as otherwise provided
in  subsection  (d),  a  secured party that disposes of collateral under
Section 9--610 shall send to the persons specified in subsection  (c)  a
reasonable authenticated notification of disposition.
(c) Persons to be notified. To comply with subsection (b), the secured
party shall send an authenticated notification of disposition to:
(1) the debtor;
(2) any secondary obligor; and
(3) if the collateral is other than consumer goods:
(A) any  other  person  from  which  the  secured  party  has
received, before the notification date, an  authenticated
notification of a claim of an interest in the collateral;
(B) any  other  secured  party  or  lienholder  that, 10 days
before the notification date, held a security interest in
or other lien on the collateral perfected by  the  filing
of a financing statement that:
(i) identified the collateral;
(ii) was indexed under the debtor's name as of that date;
and
(iii) was  filed  in  the  office  in  which  to  file  a
financing statement against the debtor covering the
collateral as of that date; and
(C) any  other  secured  party  that,  10  days  before   the
notification  date,  held  a  security  interest  in  the
collateral  perfected  by  compliance  with  a   statute,
regulation, or treaty described in Section 9--311(a).
(d) Subsection  (b)  inapplicable:  perishable  collateral; recognized
market. Subsection (b) does not apply if the collateral is perishable or
threatens to decline speedily in value or is of a type customarily  sold
on a recognized market.
(e) Compliance  with  subsection (c) (3) (B). A secured party complies
with the requirement  for  notification  prescribed  by  subsection  (c)
(3) (B) if:
(1) not later than twenty days or earlier than thirty days before
the  notification  date,  the  secured  party  requests, in a
commercially  reasonable   manner,   information   concerning
financing  statements  indexed under the debtor's name in the
office indicated in subsection (c) (3) (B); and
(2) before the notification date, the secured party:
(A)  did  not  receive  a  response  to   the   request   for
information; or
(B)  received  a  response to the request for information and
sent an authenticated notification of disposition to each
secured party or other lienholder named in that  response
whose financing statement covered the collateral.
(f) Additional pre-disposition notice for cooperative interests.
(1) In addition to such other notification as may be required pursuant
to  subsection  (b) of this section and section 9-613 of this article, 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
proposes to dispose of such collateral after a default with  respect  to
such  obligation,  shall  send  to the debtor, not less than ninety days
prior  to  the  date  of the disposition of the cooperative interest, an
additional pre-disposition notice as provided herein.
(1-a) Notwithstanding any other provision of law,  with  regard  to  a
reverse cooperative apartment unit loan, at least forty-five days before
a  secured  party,  as  defined under Section 9-102(a)(73), or its agent
takes any steps to dispose of its collateral, as provided for in Section
9-610, the secured party or its agent shall give notice to the borrower,
and separate notice to the borrower's designated third-party if one  has
been  designated  in at least fourteen-point type except for the heading
which shall be in at least sixteen-point type. The notice shall  include
the following:
YOU COULD LOSE YOUR COOPERATIVE APARTMENT UNIT TO FORECLOSURE. PLEASE
READ THE FOLLOWING NOTICE CAREFULLY.
Date
Borrower's address
Loan Number:
Property Address:
Dear Borrower(s) {or heirs of Debtor?}:
As  of  ___________,  your reverse cooperative apartment unit loan is in
default. Under New York State Law, we are  required  to  send  you  this
notice to inform you that you may be at risk of losing your home.
Your  reverse  loan is in default because you have not complied with the
following conditions of your loan:
_____ You are not occupying your  cooperative  apartment  unit  as  your
primary residence
_____ You did not submit the required annual certificate of occupancy
_____ The named borrower on the reverse loan has died
_____  You  did  not  pay  maintenance  on  your unit to the cooperative
corporation, and  {servicer}  paid  your  maintenance  for  you  on  the
following           date(s)           in          the          following
amount(s):________________________________
____________________________________
_____ You did not make required repairs to your unit
If the claim is  based  on  your  failure  to  pay  maintenance  to  the
cooperative corporation, you can cure this default by making the payment
of $____________ for the advances we made towards these payments on your
behalf.
You  have the right to dispute the claims listed above by contacting us,
by calling ___________ or sending a letter to  __________________.  This
may  include  proof  of  payments  made for water and sewer charges or a
current declaration page from your insurance company, or any other proof
to dispute the servicer's claim.
OPTIONS MAY BE AVAILABLE FOR YOU TO CURE YOUR  DEFAULT.  SOME  OF  THESE
OPTIONS  ARE  LISTED  BELOW.  YOU  MAY  CONTACT {SERVICER} AT {TOLL-FREE
NUMBER} TO DISCUSS YOUR OPTIONS.
If you are in default for failure to pay maintenance,  you  may  qualify
for a re-payment plan to cure the default balance owed.
Attached  to  this  notice  is  a  list  of  New  York  approved housing
counseling agencies and legal services in your area which  provide  free
counseling.   A  statewide  listing  by  county  is  also  available  at
https://www.dfs.ny.gov/consumers/help_for_homeowners/new_york_state_non-
profit_housing_counseling_agencies.  You  may  also  call   your   local
Department  of  Aging for a referral or call 311 if you live in New York
City.

Qualified free help is available; watch out for companies or people  who
charge a fee for these services.
You  may  also  contact  {SERVICER}  directly  at  __________ and ask to
discuss all possible options to allow  you  to  cure  your  default  and
prevent  the  foreclosure  of  your  home. While we cannot ensure that a
resolution is possible, we encourage you to take immediate steps to  try
to  achieve a resolution. The longer you wait, the fewer options you may
have.
If you have not taken any actions to resolve this matter  within  ninety
days  from  the  date  this notice was mailed, we will have the right to
take your cooperative shares from you.
If you  need  further  information,  please  call  the  New  York  State
Department  of Financial Services' toll-free helpline at 877-226-5697 or
visit the Department's website at http://www.dfs.ny.gov.
IMPORTANT: You have the right to remain in your unit until you receive a
court order telling you to leave the property. If a  foreclosure  action
is filed against you in court, you still have the right to remain in the
unit  until a court orders you to leave. You legally remain the owner of
your cooperative shares and are  responsible  for  the  unit  until  the
shares  are  transferred  to  a new owner through a sale. However, there
will be no court proceeding before the shares are transferred to  a  new
owner. After the shares are transferred, the new owner may begin a court
proceeding to evict you from the unit.
This notice is not an eviction notice.
(2)  The  notice  required  by  this  subsection  shall  be  in  bold,
fourteen-point type and shall be printed on colored paper that is  other
than the color of the notice required by subsection (b) of this section,
and  the  title  of  the notice shall be in bold, twenty-point type. The
notice shall be on its own page.
(3) The notice required by this subsection shall appear as follows:
Help for Homeowners at Risk of Foreclosure
New York State Law requires that we send you this information about  the
foreclosure process. Please read it carefully.
Notice
You  are  in  danger  of  losing your home. You are in default of your
obligations under the loan secured by your rights  to  your  cooperative
apartment.  It  is  important that you take action, if you wish to avoid
losing your home.
Sources of Information and Assistance
The State encourages you to become informed  about  your  options,  by
seeking assistance from an attorney, a legal aid office, or a government
agency  or non-profit organization that provides counseling with respect
to home foreclosures.
To locate a housing counselor near you, you  may  call  the  toll-free
helpline  maintained  by  the  New  York  State  Department of Financial
Services at
enter number) or visit the  Department's
website at            enter web address).
One of these persons or organizations may be able to help you, including
trying  to  work  with  your  lender  to modify the loan to make it more
affordable.
Foreclosure rescue scams
Be careful of people who approach you with offers to "save" your home.
There are individuals who watch for notices of  foreclosure  actions  or
collateral  sales  in  order  to  unfairly  profit  from  a  homeowner's
distress. You should be extremely careful about any  such  promises  and
any suggestions that you pay them a fee or sign any papers that transfer
rights  of  any  kind  to your cooperative apartment. State law requires
anyone offering such services for profit to enter into a contract  which

fully  describes  the  services  they  will  perform  and fees they will
charge, and which prohibits them from taking any money  from  you  until
they have completed all such promised services.
(4) The department of financial services shall prescribe the telephone
number and web address to be included in the notice.
(5)  The department of financial services shall post on its website or
otherwise make readily available the name  and  contact  information  of
government  agencies  or  non-profit organizations that may be contacted
for information about the foreclosure process, including  maintaining  a
toll-free  helpline  to  disseminate  the  information  required by this
subsection.