Protection Dissolving for Borrowers in NY Seeking to Halt UCC Sales

April 13, 2021 – Media Mention
Commercial Observer

Stephen Selbst, partner and co-chair of Herrick's Restructuring & Finance Litigation Department, was quoted in the Commercial Observer discussing the decision in Shelbourne BRF LLC et al. v. SR 677 Bway LLC and the potential impact this ruling has on borrowers' ability to seek injunctive relief from a foreclosure auction under UCC (Uniform Commercial Code) Article 9. 

In reference to the ruling, Stephen said, "The Appellate Division’s decision in Shelbourne properly protects lenders by recognizing that foreclosure proceedings do not impact a borrower’s dwelling, and the potential loss of equity value by an owner is not a reason to enjoin a UCC foreclosure." 

Read the full piece in Commercial Observer here.