N.Y. Debtor and Creditor Law 34 – Determination of value by secured creditor
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§ 34. Determination of value by secured creditor. The value of assets constituting the security may be determined by one of the following methods by the secured creditor:
Terms Used In N.Y. Debtor and Creditor Law 34
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Liquidator: means any person administering assets in any liquidation proceedings. See N.Y. Debtor and Creditor Law 30
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Secured creditor: means a creditor who has either legal or equitable security for his debt upon any property of the insolvent debtor of a nature to be liquidated and distributed in a liquidation proceeding, or a creditor to whom is owed a debt for which such security is possessed by some endorser, surety, or other person secondarily liable. See N.Y. Debtor and Creditor Law 30
(1) By collection. When the asset constituting the security is an obligation for the payment of money, the secured creditor may determine its value by collection or by exhausting his remedies thereon and then surrendering the obligation to the liquidator.
(2) By creditor's sale. When the asset constituting the security is something other than an obligation for the payment of money, the secured creditor may determine its value by creditor's sale.