Because of the unique form of ownership in cooperative housing corporations, boards have a weapon in its arsenal to enforce shareholder obligations – the nonjudicial foreclosure sale. In cooperatives, owners are shareholders in the cooperative corporation and lessees under a property lease with the cooperative. Because of this ownership structure, proprietary leases contain provisions allowing for termination of the lease for breaches and because shares are security interests, they can be sold by the board at a nonjudicial foreclosure sale. This weapon was confirmed by Appellate Division, Second Department in a decision a few weeks ago in Hargraves v. Tyler Towers Owners Corp.     Read the article……………………………………