New York Laws
Sub Part 1 - Default and Enforcement of Security Interest
9-607 - Collection and Enforcement by Secured Party

(a) Collection and enforcement generally. If so agreed, and in any
event after default, a secured party:
(1) may notify an account debtor or other person obligated on
collateral to make payment or otherwise render performance to
or for the benefit of the secured party;
(2) may take any proceeds to which the secured party is entitled
under Section 9--315;
(3) may enforce the obligations of an account debtor or other
person obligated on collateral and exercise the rights of the
debtor with respect to the obligation of the account debtor
or other person obligated on collateral to make payment or
otherwise render performance to the debtor, and with respect
to any property that secures the obligations of the account
debtor or other person obligated on the collateral;
(4) if it holds a security interest in a deposit account
perfected by control under Section 9--104 (a) (1), may apply
the balance of the deposit account to the obligation secured
by the deposit account; and
(5) if it holds a security interest in a deposit account
perfected by control under Section 9--104 (a) (2) or (3), may
instruct the bank to pay the balance of the deposit account
to or for the benefit of the secured party.
(b) Nonjudicial enforcement of mortgage. If necessary to enable a
secured party to exercise under subsection (a) (3) the right of a debtor
to enforce a mortgage nonjudicially, the secured party may record in the
office in which a record of the mortgage is recorded:
(1) a copy of the security agreement that creates or provides for
a security interest in the obligation secured by the
mortgage; and
(2) the secured party's sworn affidavit in recordable form
stating that:
(A) a default has occurred with respect to the obligation
secured by the mortgage; and
(B) the secured party is entitled to enforce the mortgage
nonjudicially.
(c) Commercially reasonable collection and enforcement. A secured
party shall proceed in a commercially reasonable manner if the secured
party:
(1) undertakes to collect from or enforce an obligation of an
account debtor or other person obligated on collateral; and
(2) is entitled to charge back uncollected collateral or
otherwise to full or limited recourse against the debtor or a
secondary obligor.
(d) Expenses of collection and enforcement. A secured party may deduct
from the collections made pursuant to subsection (c) reasonable expenses
of collection and enforcement, including reasonable attorney's fees and
legal expenses incurred by the secured party.
(e) Duties to secured party not affected. This section does not
determine whether an account debtor, bank, or other person obligated on
collateral owes a duty to a secured party.