§ 1804-a. Deed in lieu of foreclosure.
1.The authority is hereby\nauthorized to require at the time of the making of the loan or issuance\nof the loan guarantee, or at any time thereafter, in a form acceptable\nto it, a deed to all rights and interests in the real or personal\nproperty, as a security interest, such deed to be termed a "deed in lieu\nof foreclosure", and is empowered hereby to record such deed upon a\ndefault in the payment or terms of any loan made or guaranteed by the\nauthority. By such recording title to and all rights of ownership in\nsuch property shall be thereby transferred to the authority\nnotwithstanding the existence of any other deeds which are, or may be,\nrecorded after the filing of a notice by the authority concerning the\nexistence of such deed in lieu
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§ 1804-a. Deed in lieu of foreclosure. 1. The authority is hereby\nauthorized to require at the time of the making of the loan or issuance\nof the loan guarantee, or at any time thereafter, in a form acceptable\nto it, a deed to all rights and interests in the real or personal\nproperty, as a security interest, such deed to be termed a "deed in lieu\nof foreclosure", and is empowered hereby to record such deed upon a\ndefault in the payment or terms of any loan made or guaranteed by the\nauthority. By such recording title to and all rights of ownership in\nsuch property shall be thereby transferred to the authority\nnotwithstanding the existence of any other deeds which are, or may be,\nrecorded after the filing of a notice by the authority concerning the\nexistence of such deed in lieu of foreclosure in accordance with\nsubdivision six of this section and such later recorded deeds except for\nthe deed in lieu of foreclosure shall be void and unenforceable.\n 2. Notwithstanding such transfer, all liens upon such property which\nare duly perfected prior to the recording of such deed in lieu of\nforeclosure, including any lien of the authority, shall continue in full\neffect and shall be subject to foreclosure at the suit of any of the\nlienholders, including the authority, and such lienholders' mortgage or\nother security interest shall not be deemed merged or unenforceable by\nsuch transfer.\n 3. Such deed given prior to recording shall be fully effective in\npassing title and all rights of ownership upon recording thereof by the\nauthority notwithstanding the passage of time or changes in the\nownership and officers of the project owner.\n 4. Notice that such deed in lieu of foreclosure exists shall be\nrecorded in the office of the clerk of the county where such real or\npersonal property is situated and shall be in the form prescribed in\nsubdivision six of this section.\n 5. After the recording of such deed by the authority, the authority\nshall commence a foreclosure action upon its lien within one hundred\ntwenty days in accordance with the real property actions and proceedings\nlaw. The grantor and former project owner may commence an action to\ncompel the authority to foreclose its lien after such period of time,\nand is entitled to the excess of funds received from the foreclosure\nsale over the total liens outstanding on the property.\n 6. Such notice shall be in the form of a deed, duly acknowledged by\nthe grantor and stating on its face "This is a security interest held by\nthe New York job development authority and shall pass title to the\nwithin described property upon the recording of such deed in accordance\nwith section eighteen hundred four-a of the public authorities law".\n