§ 119 — Purchase by mortgage trustee

§ 119. Purchase by mortgage trustee. Any banking corporation,\nincluding corporations organized under the banking law and also national\nbanking associations authorized to act as trustees within this state,\nwhich shall act as trustee, depository or in other representative or\nfiduciary capacity in respect to any mortgage upon real property within\nthis state or upon some interest therein or in respect to any indenture\nrelating to such real property against which bonds or certificates of\nparts or of shares have been issued to the public, may acquire such real\nproperty in any foreclosure action now or hereafter pending; and in lieu\nof paying cash therefor, may make settlement for the purchase price by\ncrediting upon the bond, mortgage or other obligation held by it, the\nnet proceeds of sale after deducting therefrom the expenses of the sale\nand the costs of the action and any other sums which such trustee is\nauthorized to deduct under the mortgage, deed of trust or indenture. The\nofficer making such foreclosure sale shall accept such settlement\nwithout requiring the production of the bonds, notes, certificates of\nsharing, certificates of participation, or other security evidencing the\npro rata interest of the holders thereof in the mortgage or indenture\nbeing foreclosed; and, without such production, there shall be deemed\ncredited thereon the pro rata share of the net proceeds of sale\nascertained and established as aforesaid.\n