American Metal Finishers, Inc. v. Palleschi

The principal issue on this appeal is whether a transfer of business assets by a debtor to a designee of its secured creditor constitutes a transfer "in settlement or realization of a lien or other security interest” which is excepted from the general requirements of article 6 of the Uniform Commercial Code (Bulk Transfers) pursuant to subdivision (3) of section 6-103 of the Uniform Commercial Code. We conclude that it does and we therefore affirm the order of the Appellate Term.

Respondent Harry Palleschi, as landlord, commenced a summary proceeding against his tenant, Crown-Bestell, Inc.…