Finance
In New York, a 'cooperative share loan' (co-op financing) differs from a conventional mortgage in that:
AIt carries a lower interest rate than a conventional mortgage
BIt is secured by personal property (co-op shares and proprietary lease) rather than real property, so the UCC governs the security interest rather than real property law✓ Correct
CIt does not require a credit check or income verification
DIt is backed by the federal government
Explanation
A co-op share loan is not a mortgage on real property — it is a loan secured by personal property (the co-op shares and proprietary lease). Under Article 9 of the Uniform Commercial Code (UCC), the lender perfects this security interest by filing a UCC-1 financing statement (not by recording a mortgage). This has important differences in foreclosure procedure and legal protections.
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