Penal Law § 185.05 · Article 185. Frauds On Creditors
Fraud involving a security interest
Text — Law content up to date as of October 23, 2026, as published by the New York State Senate (Open Legislation)
§ 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.
Source of truth
- Edition
- Law content up to date as of October 23, 2026, as published by the New York State Senate (Open Legislation)
- Official file
- https://legislation.nysenate.gov/pdf/laws/PEN185.05
- Text hash
- sha256 07741500cf4e07cedf8b6588cc6b835b0a474267c55b34527dcd219034ffc695
- Composed by
- gen_ny_statutes.py 2026-11-10: the Senate's Open Legislation law tree (GET /api/3/laws/<ID>?full=true) read in document order; the Senate's PDF of the whole law (GET /pdf/laws/<ID>?full=true), read with PDFium, prints the same words in the same order
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.