Legislation

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.

* NB Effective until June 3, 2026
* (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

a signed notification of disposition; or

(2) the debtor and any secondary obligor waive the right to

notification.

* NB Effective June 3, 2026

* (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.

* NB Effective until June 3, 2026
* (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 signed notification of disposition.

* NB Effective June 3, 2026

* (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).

* NB Effective until June 3, 2026
* (c) Persons to be notified. To comply with subsection (b), the secured
party shall send a signed 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, a signed

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).

* NB Effective June 3, 2026

(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.

* NB Effective until June 3, 2026
* (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 a signed notification of disposition to each secured

party or other lienholder named in that response whose

financing statement covered the collateral.

* NB Effective June 3, 2026

(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.