BANK LEUMI USA v. AGATI


5 A.D.3d 292 (2004)

774 N.Y.S.2d 499

BANK LEUMI USA, Respondent, v. PETER AGATI, Appellant, et al., Defendants.

Appellate Division of the Supreme Court of the State of New York, First Department.

March 25, 2004.


There is no merit to appellant's claim that under UCC 9-207, he was relieved of liability on his guarantee by plaintiff's failure to act in a commercially reasonable manner in connection with the borrower's voluntary sale of an item of collateral. According to appellant, plaintiff knew, prior to the sale, that the borrower was insolvent, yet opted not to fully satisfy the borrower's debt out of the proceeds of the sale. The argument overlooks that UCC 9-207 requires that...

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