New York Consolidated Laws, Debtor and Creditor Law - DCD § 34. Determination of value by secured creditor

(1) By collection.  When the asset constituting the security is an obligation for the payment of money, the secured creditor may determine its value by collection or by exhausting his remedies thereon and then surrendering the obligation to the liquidator.

(2) By creditor's sale.  When the asset constituting the security is something other than an obligation for the payment of money, the secured creditor may determine its value by creditor's sale.