§ 127 — Restrictions on trustees

New York § 127

• Jurisdiction: New York
• Law RPP: Real Property
• Art. 4-A: Trust Indentures and Interests Therein

Text

§ 127. Restrictions on trustees. 1. No trustee shall accept a trust or\nact as trustee under a trust mortgage affecting any property in which he\nor any of the officers or directors of the trustee shall have, directly\nor indirectly, any financial interest.\n 2. No trustee nor any officer or director of a trustee, nor any\nemployee of any company which is a subsidiary of, controlled by or\naffiliated with the trustee shall, either directly or indirectly, act as\ninsurance broker or agent in connection with the placing or writing of\nany insurance of any kind on any property affected or covered by a\nmortgage held by such trustee under a trust indenture, deed of trust, or\nother similar instrument, nor shall such trustee be an officer,\ndirector, partner or employee of or otherwise connected with or have any\nfinancial interest in, directly or indirectly, in any firm, agency,\nbusiness, association or corporation that shall act as broker or agent\nin connection with the placing or writing of such insurance; nor shall\nany trustee or any officer, director or employee of the trustee be an\nofficer, director, partner or an employee of or have any financial\ninterest in any firm, agency, association or corporation engaged by such\ntrustee as his or its representative or agent in the management or\nsupervision of, or the collection of rents and income from any property\naffected or covered by the mortgage held by the trustee under a trust\nindenture, deed of trust, or other similar instrument.\n 3. No trustee shall accept any trust or act as trustee under any other\ntrust indenture covering or affecting the same property.\n 4. No owner or mortgagor of any property covered by a trust indenture,\ndeed of trust, or other similar instrument and no officer, director,\nstockholder or employee of such owner or mortgagor shall accept a trust\nor act as trustee with respect to such property.\n 5. The provisions of this section shall only apply to trust indentures\nor mortgages hereafter entered into.\n