A cooperative apartment owner in Manhattan has defaulted on their share loan secured by their co-op shares. The lender wants to foreclose. How does foreclosure on cooperative shares differ from foreclosure on real property in New York?
Correct Answer
C) Co-op shares are foreclosed through UCC Article 9 as personal property
Cooperative shares are personal property, not real property, so foreclosure follows UCC Article 9 procedures for secured transactions involving personal property. This is a non-judicial process that differs significantly from real property foreclosure.
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Usury is the practice of charging an interest rate that exceeds the maximum rate permitted by state law. Usury laws protect borrowers from excessive interest charges on loans.
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