N.Y. PBG Law § 50 — New York Code / Act PBG / Article 3 / Section 50
Foreclosure and other remedies against an authority
Status: in_force

§ 50. Foreclosure and other remedies against an authority.  1. In an\naction or proceeding to foreclose a mortgage on property of an\nauthority, the authority and the municipality, in addition to all other\nnecessary parties, shall be made parties defendant and shall take such\nsteps in said action as may be necessary to protect the public interest\ntherein and no costs shall be awarded against them.  Wherever under the\ninstrument creating a lien a notice of default in writing is required to\nbe served upon an authority before the institution of a foreclosure\naction or proceeding, a copy of such notice shall be served upon the\nmunicipality at least five days before the institution of such\nproceedings. At such a sale of the property of the authority pursuant to\nforeclosure or other proceedings, the municipality may purchase the\nproperty affected; or, it may, prior to the institution of a foreclosure\naction or proceeding, or during such action or proceeding, make such\npayment or take such other steps as may be necessary to cure any\ndefaults that may have occurred and such steps as may be necessary to\nprotect the property of an authority and the public interest.\n  2. In addition to any other rights and remedies, but subject to such\nlimitations as may be made by contract, any obligee, lessor or\nmortgagee, or any trustee or agent designated in the bonds of an\nauthority or under a resolution, mortgage or indenture executed by an\nauthority as security for its bonds may:\n  (a) by mandamus or other suit, action or proceeding at law or in\nequity compel the authority to perform each and every term, provision\nand covenant contained in any agreement of the authority with an\nobligee, trustee, mortgagee or lessor and require the performance of any\nor all such covenants and agreements of the authority and of the duties\nimposed upon the authority by this article;\n  (b) by action or suit in equity, enjoin any acts or things which may\nbe unlawful or in violation of the rights of such obligee, trustee,\nmortgagee or lessor;\n  (c) by suit, action or proceeding in any court of competent\njurisdiction compel possession of any project or any part thereof to be\nsurrendered to such obligee, trustee, mortgagee, agent or lessor having\nthe right to such possession under any agreement with the authority;\n  (d) by suit, action or proceeding in any court of competent\njurisdiction obtain the appointment of a receiver of any project of the\nauthority or any part thereof and of the rents and profits therefrom. If\nsuch receiver be appointed, he may enter and take possession of such\nproject or any part or parts thereof and operate and maintain the same,\nand collect and receive all fees, rents, revenues, or other charges\nthereafter arising therefrom in the same manner as the authority itself\nmight do, and shall keep such moneys in a separate account or accounts\nand apply the same in accordance with the obligations of the authority\nas the court shall direct;\n  (e) by action or suit in equity require an authority to account as if\nit were the trustee of an express trust.\n