N.Y. Debtor & Creditor Law Section 59
Consenting creditor must relinquish security


A creditor who has, in his own name, or in trust for him, a mortgage, judgment, or other security, for the payment of a sum of money, which is a lien upon, or otherwise affects, real or personal property belonging to the petitioner, or transferred by him since the lien was created, cannot become a consenting creditor, with respect to the debt so secured, unless he adds to or includes in his consent, a written declaration, under his hand, to the effect, that he relinquishes the mortgage, judgment, or other security, so far as it affects that property, to the trustee to be appointed pursuant to the petition, for the benefit of all the creditors. Such a declaration operates, to that extent, as an assignment to the trustee, of the mortgage, judgment, or other security; and vests in him accordingly all the right and interest of the consenting creditor therein.

Source: Section 59 — Consenting creditor must relinquish security, https://www.­nysenate.­gov/legislation/laws/DCD/59 (updated Sep. 22, 2014; accessed Jun. 15, 2024).

50
Who may be discharged
51
To what court application to be made
52
Contents of petition
53
Consent of creditors to be annexed
54
Consent of executor, administrator, receiver, or trustee
55
Consent of corporation or joint-stock association
56
Consent of partnership
57
Effect of consent where petitioner is a joint debtor
58
Consent of purchaser or assignee of debt
59
Consenting creditor must relinquish security
60
Penalty if creditor swears falsely
61
Affidavit of consenting creditor
62
When non-resident creditor to annex accounts and securities
63
Petitioner’s schedule
64
Petitioner’s affidavit
65
Order to show cause
66
How order published and served
67
Hearing
68
Putting cause on calendar
69
Opposing creditor to file specifications, and may demand jury trial
70
Opposing creditor to file proofs, if not named in schedule
71
Proceedings if jurors do not agree
72
When insolvent required to produce his non-resident wife
73
Examination of insolvent
74
When insolvent cannot be discharged
75
When assignment to be directed
76
Assignment
77
Trustees, how designated
78
Effect of assignment
79
When discharge to be granted
80
Order to show cause where trustee refuses to give certificate
81
Proceedings upon return of order
82
Discharge and other papers to be recorded
83
Effect of discharge
84
Effect of discharge as to foreign contracts or creditors
85
Effect of discharge as to debts to the United States and the state
86
Insolvent to be released from imprisonment
87
Discharge, when void
88
Invalidity may be proved on motion to vacate order of arrest or execution

Accessed:
Jun. 15, 2024

Last modified:
Sep. 22, 2014

§ 59’s source at nysenate​.gov

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