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New York Court of Appeals Rules on Attachment and Execution of Intangible Assets

Introduction

On February 16, 2010, New Yorks highest court held that an out-of-state judgment debtors ownership or membership interests in business entities formed outside the state of New York are considered property subject to pre-judgment attachment under N.Y. C.P.L.R. (CPLR) Article 62, even where the judgment debtors interests are not evidenced by a certificate or other written instrument. This decision further clarifies the law of enforcement in New York and constitutes an expansion of judgment creditors ability to attach a judgment debtors property in satisfaction of a judgment in New York, a major financial center and key enforcement venue.

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