New York Ruling Eases Use of Expedited Enforcement for Creditors

In summary, Section 3213 can be a valuable tool for creditors to enforce promissory notes, guaranties, and other instruments in New York state courts. Creditors wishing to use this procedure should include a provision in their documentation stating that the instrument qualifies as one for the payment of money only and that the obligor waives the right to challenge the instrument’s status. The Marjan decision reinforces the effectiveness of these provisions, minimizing the risk of successful threshold challenges to the instrument’s enforceability under Section 3213.