N.Y. Debtor & Creditor Law § 34

§ 34. Determination of value by secured creditor. The value of assets\nconstituting the security may be determined by one of the following\nmethods by the secured creditor:\n (1) By collection. When the asset constituting the security is an\nobligation for the payment of money, the secured creditor may determine\nits value by collection or by exhausting his remedies thereon and then\nsurrendering the obligation to the liquidator.\n (2) By creditor's sale. When the asset constituting the security is\nsomething other than an obligation for the payment of money, the secured\ncreditor may determine its value by creditor's sale.\n