New York law offers creditors an expedited procedure to enforce an “instrument for the payment of money only” — such as many promissory notes and guaranties — via Section 3213 of the Civil Practice Law and Rules. This procedure allows creditors to commence an action in New York state court through a motion for summary judgment in lieu of a complaint, eliminating the need to wait for an obligor to answer a complaint before moving for summary judgment.
Section 3213 does not authorize discovery, enabling creditors to obtain judgments more rapidly and at a lower cost. This expedited procedure has been invoked in numerous cases in New York state courts.
A recent decision by the First Judicial Department in Marjan International Corp. v. Lillian August Designs Inc. has made it easier for creditors to use this expedited procedure. The court’s decision allows a creditor to minimize the risk of potentially challenging litigation on threshold issues by including a provision in the relevant documentation that specifies it qualifies as an instrument for the payment of money only, within the meaning of Section 3213.
