| Perfection
|| Possession and Sale || New Title
and Plates || Other Issues
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| LAWDOG™ New York Repossession |
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| Validity Requires Compliance
Unless excepted by section two thousand one hundred three, a security interest in a
vehicle of a type for which a certificate of title is required is not valid against
creditors of the owner or subsequent transferees or lienholders of the vehicle without
knowledge of the security interest unless perfected as provided in this section. Title 10A46 Section 2118 |
| How Perfected A security
interest is perfected by delivery to the commissioner of existing certificate of title, if
any, application for a certificate of title containing name and address of lienholder and
required fee, or by delivery of a notice of lien evidencing a lien arising under section
two hundred eleven of the lien law and section one hundred eleven-u of the social services
law. (see shild suuport below.) Title
10A46 Section 2118 |
| When Perfected Perfected as
of the time of its creation if the delivery is completed within ten days thereafter,
otherwise, as of the time of delivery. A security interest in a vehicle provided for in a
security agreement made by a person before he becomes owner of the
vehicle or arising under section two hundred eleven of the lien law and section one
hundred eleven-u of the social services law is deemed to be created at the time of the
sale or transfer of the vehicle to him; Title 10A46 Section 2118 Title
10A46 from Findlaw New York |
| Notice of Lien If not
perfected as above, a lien may be perfected by lienholder delivering to the commissioner a
notice of security interest in the form the commissioner prescribes and the required fee
or a notice of lien, but only if the delivery is completed before the commissioner issues
a certificate of title of the vehicle containing the name of the owner as owner. If so
perfected, it is perfected as of the time of sale or transfer of vehicle to him, if the
delivery is completed within ten days thereafter, otherwise, as of the time of delivery.
However, a lien perfected in this manner is subject and subordinate to a security
interest, perfected as descibed above, of a lienholder without knowledge of it. Title 10A46 Section 2118 |
| Out of State Vehicles If a
vehicle is subject to a security interest when brought into this state, the validity of
the security interest is determined by the law of the jurisdiction where the vehicle was
when the security interest attached, subject to the very specific rules contained in Title 10A46 Section 2118 |
| Past Due Child or Spousal Support
The New York state department of social services, or a local social services district, or
its authorized representative on behalf of persons receiving services under title six-A of
article three of the social services law have a lien against personal property owned by a
support obligor when such support obligor is under a court order to pay child support or
combined child and spousal support to a support collection unit and such support obligor
has accumulated support arrears/past due support in an amount equal to or greater than the
amount of current support due for a period of four months. Such lien shall be in an amount
sufficient to satisfy such support arrears/past due support. Said lien shall be perfected
in the case of a vehicle as that term is defined in section two thousand one hundred one
of the vehicle and traffic law with the department of motor vehicles. The filing of a
notice of lien or of a release of lien shall be completed without payment of a fee. The
filing of notice of lien or release of lien may be done by electronic means. S 111-u.
Liens. Title
6-B of Article 3 of Social Services from Findlaw New York |
| New York State
Consolidated Laws Vehicle &
Traffic
New York State Assembly |
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| Title
10A46 from FindLaw New York |
| Notify Police of Repossession of Motor
Vehicle Any person, firm or corporation, or agent, employee or
representative thereof, repossessing or retaking a motor vehicle or motorcycle pursuant to
the provisions of article nine of the uniform commercial code, or other authority of law,
or any contract or agreement, shall, immediately following such repossession or retaking,
personally appear at a station house or other office of the police department, or agency
or officer performing like functions, in the locality wherein such repossession or
retaking occurred, give notice to such department, agency or officer of such repossession
or retaking. Title
4A17 Section 425 (New York Assembly: Title 4A17 ) |
| Plates To Office, Notice To Owner
In addition, this person must, within twenty-four hours, personally deliver or mail by
special delivery first class mail to the nearest motor vehicle district office, notice of
such repossession or retaking on approved form, and the license plates of vehicle or
motorcycle. Notice of the repossession or retaking, including name and address of person,
firm or corporation repossessing or retaking same, must also be given within twenty-four
hours to owner of motor vehicle or motorcycle, either personally or by registered or
certified mail directed to owner at his last-known address. Title
4A17 Section 425 |
| Without Breach of Peace
Unless the motor vehicle or motorcycle can be repossessed or retaken without breach of the
peace, it must be repossessed or retaken by legal process, but nothing herein contained
shall be construed to authorize a violation of the criminal law. Title
4A17 S 425 (New York Assembly: Title 4A17 ) |
| Possession After Default
Unless otherwise agreed a secured party has on default the right to take possession of the
collateral. In taking possession a secured party may proceed without judicial process if
this canbe done without breach of the peace or may proceed by action. If the security
agreement so provides the secured party may require debtor to assemble the collateral and
make it available to secured party at a place to be designated by secured party which is
reasonably convenient to both parties. Section 9-503 |
| Right to Redeem At any time
before secured party has disposed of collateral or entered into a contract for its
disposition under Section 9-504 or before discharge under Section 9-505, debtor or any
other secured party may, unless otherwise agreed in writing after default, redeem the
collateral by tendering fulfillment of all obligations secured by the collateral as well
as expenses reasonably incurred by secured party in retaking, holding and preparing the
collateral for disposition, arranging for sale, and to extent provided in the agreement
and not prohibited by law, reasonable attorneys` fees and legal expenses.Section 9-506 |
| Compulsory Sale of the Collateral as Discharge of Obligation. (1)
If the debtor has paid sixty per cent of the cash price in the case of a purchase money
security interest in consumer goods or sixty per cent of the loan in the case of another
security interest in consumer goods, and has not signed afterdefault a statement
renouncing or modifying his rights under thisPart a secured party who has taken possession
of collateral mustdispose of it under Section 9-504 and if he fails to do so withinninety
days after he takes possession the debtor at his optionmay recover in conversion or under
Section 9-507(1) on secured party`s liability.Section 9-505 |
| Acceptance As Satisfaction
In any other case involving consumer goods or any other collateral, a secured party in
possession may, after default, propose to retain the collateral in satisfaction of the
obligation. Written notice of the proposal must be sent to debtor if debtor has not signed
after default, a statement renouncing or modifying rights under this subsection. In the
case of consumer goods no other notice need be given. In other cases notice must be sent
to any other secured party from whom secured party has received, before sending his notice
to debtor or before renunciation of rights, written notice of claim of interest in
the collateral. If secured party receives objection in writing from a person entitled to
receive notice within twenty-one days after notice was sent, secured party must dispose of
the collateral under Section 9-504. In the absence of such written objection, secured
party may retain the collateral in satisfaction of the obligation. Section 9-505 |
| Sale and Application of Proceeds
A secured party after default may sell, lease or otherwise dispose of any or all of the
collateral in its then condition or following any commercially reasonable preparation or
processing. Any sale of goods issubject to the Article on Sales (Article 2). The proceeds
of sale must be applied in the order following to reasonable expenses of retaking,
holding, preparing for sale or lease, selling, leasing and the like and, to extent
provided for in agreement and not prohibited by law, reasonable attorneys` fees and legal
expenses incurred by secured party. Proceeds would then be applied to satisfaction of debt
secured by the security interest under which the sale is made. Section 9-504 |
| Subordinate Liens If any
proceeds remain, they would next apply to satisfaction of debt secured by any subordinate
security interest in the collateral if written notice of demand is received before
distribution of proceeds is completed, but only to the extent of the proceeds
undistributed when such notice is received. If requested by secured party, the holder of a
subordinate security interest must seasonably furnish reasonable proof of his interest,
file with secured party a sufficient indemnity bond, and satisfy any other reasonable
requirements imposed by secured party, and unless he does so, secured party need not
comply with demand. Section 9-504 |
| Accounting and Deficiency
If the security interest secures debt, secured party must account to debtor for any
surplus, and, unless otherwise agreed, debtor is liable for any deficiency. But if the
underlying transaction was a sale of accounts or chattel paper, debtor is entitled to any
surplus or is liable for any deficiency only if the security agreement so provides.
Section 9-504 |
| Public or Private Sale After Notice
Disposition of the collateral may be by public or private proceedings and may be at any
time and place and on any terms. but every aspect of the disposition including method,
manner,time, place and terms must be commercially reasonable. Unless collateral is
perishable or threatens to decline speedily in value, reasonable notice of the time and
place of any public sale or the time after which any private sale is to be made must be
sent by secured party to debtor, if debtor has not signed, after default, a statement
renouncing or modifying right to notice. In the case of consumer goods no other notice
need be sent. Subordinate Notice In other
cases notice must be sent to any other secured party from whom secured party has received,
before sending notice to debtor or before renunciation of rights, written notice of claim
of interest in the collateral. The secured party may buy at any public sale and if the
collateral is of a type customarily sold in a recognized market or is of a type which is
the subject of widely distributed standard price quotations he may buy at private sale.
Section 9-504 |
| Other Liable Parties
A person who is liable to a secured party under a guaranty, indorsement, repurchase
agreement or the like and who receives a transferof collateral from the secured party or
is subrogated to his rights, thereafter has the rights and duties of secured party.
Such a transfer of collateral is not a sale or disposition of the collateral under this
Article. Section 9-504 |
| Uniform Commercial Code |
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| Non-Resident Vehicles While
not normally covered by New York law, a certificate of title may be issued to a
non-resident for a vehicle purchased by or transferred to such non-resident as a result of
a sale after repossession, or a sale by a sheriff or marshall to satisfy a judgement, or a
sale to foreclose a garageman`s lien, provided such sale was held in this state, or a
result of the settlement of an estate of a deceased if such settlement is pursuant to the
estates, powers and trusts law of this state or a sale by a police department, provided
such sale was held in this state; S 2102 |
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