§ 2866 — Foreclosures and judgments

§ 2866. Foreclosures and judgments. 1. In any foreclosure action the\ncommissioner shall be made a party defendant. He shall take all steps\nnecessary to protect the interests of the public therein and no costs\nshall be awarded against him. Foreclosures shall not be decreed unless\nthe court to which application is made shall be satisfied that the\ninterests of the lienholder or holders cannot be adequately assured\nexcept by the sale of the property. In any such proceeding, the court\nshall be authorized to appoint the commissioner as receiver of the\nproperty, or to grant such other and further relief as may be reasonable\nand proper.\n 2. Notwithstanding the foregoing provisions of this section, wherever\nit shall appear that the New York state housing finance agency or the\nNew York state medical care facilities finance agency shall have loaned\non a mortgage which is a lien upon any such property, such New York\nstate housing finance agency or New York state medical care facilities\nfinance agency, as the case may be, shall have all the remedies\navailable to a mortgagee under the laws of the state of New York, free\nfrom any restrictions contained in this section, except that the\ncommissioner shall be made a party defendant and that the commissioner\nshall take all steps necessary to protect the interests of the public\nand no costs shall be awarded against him.\n 3. In the event of a judgment against a company in any action not\npertaining to the collection of a mortgage indebtedness, there shall be\nno sale of any of the real property of such company except upon sixty\ndays' written notice to the commissioner and the New York state housing\nfinance agency or the New York state medical care facilities finance\nagency, as the case may be. Upon receipt of such notice the commissioner\nand the agency shall take such steps as in its judgment may be necessary\nto protect the rights of all parties.\n