N.Y. RCO Law § 12 — New York Code / Act RCO / Article 2 / Section 12
Sale, mortgage and lease of real property of religious corporations
Status: in_force

§ 12. Sale, mortgage and lease of real property of religious\ncorporations. 1. A religious corporation shall not sell, mortgage or\nlease for a term exceeding five years any of its real property without\napplying for and obtaining leave of the court or the attorney general\ntherefor pursuant to section five hundred eleven of the not-for-profit\ncorporation law as that section is modified by paragraph (d-1) of\nsubdivision one of section two-b of this chapter or section five hundred\neleven-a of the not-for-profit corporation law, except that a religious\ncorporation may execute a purchase money mortgage or a purchase money\nsecurity agreement creating a security interest in personal property\npurchased by it without obtaining leave of the court therefor.\n  2. The trustees of an incorporated Protestant Episcopal church shall\nnot vote upon any resolution or proposition for the sale, mortgage or\nlease of its real property, unless the rector of such church, if it then\nhas a rector, shall be present, and shall not make application to the\ncourt for leave to sell or mortgage any of its real property without the\nconsent of the bishop and standing committee of the diocese to which\nsuch church belongs, or execute and deliver a lease of any of its real\nproperty for a term exceeding five years without similar consent of the\nbishop and standing committee of the diocese to which such church\nbelongs; but in case the see be vacant, or the bishop be absent or\nunable to act, the consent of the standing committee with their\ncertificate of the vacancy of the see or of the absence or disability of\nthe bishop shall suffice.\n  3. The trustees of an incorporated Roman Catholic church shall not\nmake application to the court for leave to mortgage, lease or sell any\nof its real property without the consent of the archbishop or bishop of\nthe diocese to which such church belongs or in case of their absence or\ninability to act, without the consent of the vicar-general or\nadministrator of such diocese.\n  4. The trustees of an incorporated Ruthenian Catholic church of the\nGreek rite shall not make application to the court for leave to\nmortgage, lease or sell any of its real property without the consent in\nwriting of the Ruthenian Greek Catholic bishop of the diocese to which\nsuch church belongs, or, in case of his absence or inability to act,\nwithout the consent of the vicar-general of such bishop or of the\nadministrator of such diocese.\n  5. The trustees of an incorporated African Methodist Episcopal Zion\nchurch shall not make application to the court for leave to mortgage,\nlease or sell any of its real property without the consent of the bishop\nof the diocese to which said church belongs, or in case of his absence\nor inability to act, without the consent of the annual conference having\njurisdiction over such church.\n  5-a. The trustees of an incorporated Presbyterian church in connection\nwith the General Assembly of the Presbyterian Church (U.S.A.) shall not\nmake application to the court for leave to mortgage, lease or sell any\nof its real property without the consent in writing of the particular\nPresbytery with which said church is connected.\n  5-b. The trustees of an incorporated United Methodist church shall not\nmake application to the court for leave to mortgage, lease, or sell any\nof its real property without the written consents of the district\nsuperintendent and the preacher in charge and the authorization of the\ncharge conference by a majority of those present and voting at a meeting\nof the charge conference, provided that not less than ten days' notice\nof such meeting and proposed action shall have been given from the\npulpit of the charge, or, if no regular services are held, by mail to\nthe members of the charge conference.\n  5-c. The trustees of an incorporated Reformed Church in connection\nwith the General Synod of the Reformed Church in America, shall not make\napplication to the court for leave to mortgage, lease or sell any of its\nreal property without the consent in writing of the trustees of the\nClassis with which said church is connected.\n  5-d. The trustees of the Greek Orthodox Archdiocese of America shall\nnot make application to the court for leave to mortgage, lease or sell\nany of its real property without the consent of its archbishop.\n  6. The petition of the trustees of an incorporated Protestant\nEpiscopal church or Roman Catholic church shall, in addition to the\nmatters required by article five of the not-for-profit corporation law\nto be set forth therein, set forth that this section has also been\ncomplied with.  The petition of the trustees of an incorporated African\nMethodist Episcopal Zion church shall in addition to the matters\nrequired by article five of the not-for-profit corporation law to be set\nforth therein, set forth that this section has also been complied with.\nThe petition of the trustees of an incorporated Presbyterian church in\nconnection with the General Assembly of the Presbyterian Church\n(U.S.A.), shall, in addition to the matters required by article five of\nthe not-for-profit corporation law to be set forth therein, set forth\nthat this section has also been complied with. The petition of the\ntrustees of an incorporated United Methodist church shall, in addition\nto the matters required by article five of the not-for-profit\ncorporation law to be set forth therein, set forth that this section has\nalso been complied with. The petition of the trustees of an incorporated\nGreek Orthodox Archdiocese of America church shall, in addition to the\nmatters required by article five of the not-for-profit corporation law\nto be set forth therein, set forth that this section has also been\ncomplied with.\n  7. Lots, plots or burial permits in a cemetery owned by a religious\ncorporation may, however, be sold, also all or part of such cemetery may\nbe conveyed to a cemetery corporation, without applying for or obtaining\nleave of the court. No cemetery lands of a religious corporation shall\nbe mortgaged while used for cemetery purposes.\n  8. Except as otherwise provided in this chapter in respect to a\nreligious corporation of a specified denomination, any solvent religious\ncorporation may, by order of the court, obtained as above provided in\nproceedings to sell, mortgage or lease real property, convey the whole\nor any part of its real property to another religious corporation, or to\na membership, educational, municipal or other non-profit corporation,\nfor a consideration of one dollar or other nominal consideration, and\nfor the purpose of applying the provisions of article five of the\ngeneral corporation law, a proposed conveyance for such consideration\nshall be treated as a sale, but it shall not be necessary to show, in\nthe petition or otherwise, nor for the court to find that the pecuniary\nor proprietary interest of the grantor corporation will be promoted\nthereby; and the interests of such grantor shall be deemed to be\npromoted if it appears that religious or charitable objects generally\nare conserved by such conveyance, provided, however, that such an order\nshall not be made if tending to impair the claim or remedy of any\ncreditor.\n  9. If a sale, mortgage or lease for a term exceeding five years of any\nreal property of any such religious corporation has been heretofore or\nshall be hereafter made and a conveyance or mortgage executed and\ndelivered without the authority of a court of competent jurisdiction,\nobtained as required by law, or not in accordance with its directions,\nthe court may, thereafter, upon the application of the corporation, or\nof the grantee or mortgagee in any such conveyance or mortgage or of any\nperson claiming through or under any such grantee or mortgagee upon such\nnotice to such corporation, or its successor, and such other person or\npersons as may be interested in such property, as the court may\nprescribe, confirm said previously executed conveyance or mortgage, and\norder and direct the execution and delivery of a confirmatory deed or\nmortgage, or the recording of such confirmatory order in the office\nwhere deeds and mortgages are recorded in the county in which the\nproperty is located; and upon compliance with the said order such\noriginal conveyance or mortgage shall be as valid and of the same force\nand effect as if it had been executed and delivered after due\nproceedings had in accordance with the statute and the direction of the\ncourt. But no confirmatory order may be granted unless the consents\nrequired in the first part of this section for a Protestant Episcopal,\nRoman Catholic, Presbyterian church or an incorporated African Methodist\nEpiscopal Zion church or an incorporated United Methodist church have\nfirst been given by the prescribed authority thereof, either upon the\noriginal application or upon the application for the confirmatory order.\n  10. The provisions of this section shall not apply to real property\nheretofore or hereafter acquired on a sale in an action or proceeding\nfor the foreclosure of a mortgage owned by a religious corporation or\nheld by a trustee for or in behalf of a religious corporation or to real\nproperty heretofore or hereafter acquired by a religious corporation or\nheld by a trustee for or in behalf of a religious corporation by deed in\nlieu of the foreclosure of a mortgage owned, either in whole or in part,\nwhether in certificate form or otherwise, by a religious corporation.\n