Leonard Lombard, Respondent, v Station Square Inn Apartments Corp., Appellant, et al., Defendant. (Index No. 8793/10), 94 A.D.3d 717

Summary

Shares of stock issued in connection with cooperative apartments were personal property, not real property. Accordingly, a contract for sale of shares referable to a residential cooperative housing apartment was in reality a sale of securities in a cooperative corporation, and was governed by the Uniform Commercial Code. UCC 8-209 provided that a lien in favor of an issuer upon a certificated security was valid against a purchaser if the right of the issuer to the lien was noted conspicuously on the security certificate, which it was here. Under the government documents, defendant had an enforceable security interest in the shares owned by plaintiff, and, upon plaintiff's default, defendant was entitled to proceed under UCC article 9 and take possession of the shares without judicial process. Given plaintiff's admitted default and failure to cure or move for injunctive relief within the time set forth in the notice of default, his failure to establish that he was a holder of unsold ...