Fraud involving a security interest · as in force on May 31, 2026
§ 185.05 Fraud involving a security interest.
A person is guilty of fraud involving a security interest when, having executed a security agreement creating a security interest in personal property securing a monetary obligation owed to a secured party, and:
1. Having under the security agreement both the right of sale or other disposition of the property and the duty to account to the secured party for the proceeds of disposition, he sells or otherwise disposes of the property and wrongfully fails to account to the secured party for the proceeds of disposition; or
2. Having under the security agreement no right of sale or other disposition of the property, he knowingly secretes, withholds or disposes of such property in violation of the security agreement.
Fraud involving a security interest is a class A misdemeanor.
A person commits fraud involving a security interest after signing a security agreement covering personal property if either:
The offense is a class A misdemeanor. ★
Marked in the text: penalties, time limits, sums of money. Editorial emphasis added by this edition; it does not appear in the statute as enacted.
This provision appears in Volume 4 — The Court Clerk: Penal Law; Volume 1 — The Court Officer in Plain English; Volume 3 — The Court Officer: Penal Law; Volume 3 — Your Career: Penal Law in Plain English.