Marcus defaults on his share loan for a co-op in the Bronx. How does the foreclosure process differ from a traditional mortgage foreclosure in New York?
Correct Answer
C) Share loan foreclosures are conducted through UCC Article 9 procedures for personal property
Because share loans are secured by personal property (shares and lease), foreclosures follow UCC Article 9 procedures for personal property rather than real property foreclosure laws. This typically involves public or private sale of the collateral after proper notice.
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