Since the start of the COVID-19 pandemic, borrowers and lenders alike have sought clarity regarding the permissibility of UCC foreclosure sales in the midst of the ongoing pandemic and the resulting economic fallout, as courts continue to grapple with vague legislation and the question of whether or not a “commercially reasonable” sale (a requirement for disposition of collateral under the UCC) is plausible under current circumstances. A recent decision by the Appellate Division, First Department (“First Department”), however, should provide a sliver of hope for mezzanine lenders seeking to proceed with a UCC foreclosure sale during these challenging times.

https://www.mondaq.com/unitedstates/real-estate/1050196/courts-a-foreclosure-pandemic-pause-part-3