NY Lien L § 29 (2021)
2021 New York Laws LIE - Lien Article 2 - Mechanics' Liens 29 - Subordination of Liens to Subsequent Mortgage.

§  29. Subordination of liens to subsequent mortgage. In case an owner   of real property upon which an improvement is being or  has  been  made,   desires  to obtain a loan by executing and delivering a bond or bonds or   note or notes secured by a mortgage upon such real property, or any part   thereof, and in case lienors having mechanics' liens against  such  real   property, or any part thereof, notices of which have been filed prior to   the  recording  of  such  mortgage,  and  which said liens have not been   discharged as in this article provided, shall, to the extent of at least   fifty-five per centum of the aggregate amount for which notices of  such   liens  have  been  so filed, by an instrument or instruments in writing,   duly acknowledged, designate  and  authorize  one  or  more  persons  to   consent  to the execution and delivery of such bond and mortgage or note   and mortgage, and in case the consent in writing, duly acknowledged,  of   such  person  or  persons to the execution and delivery of such bond and   bonds and mortgage or note and notes and mortgage shall be filed in  the   office  of the clerk of the county where such real property is situated,   together with such instrument or instruments of  designation,  then  all   mechanics'  liens  for  labor performed and materials furnished prior to   the recording  of  such  mortgage  whether  notices  thereof  have  been   theretofore or are thereafter filed, shall be subordinate to the lien of   such  bond  or  bonds  and mortgage or note or notes and mortgage to the   extent of the full amount which shall be  advanced  thereunder  provided   such  mortgage  contains the covenant prescribed in subdivision three of   section thirteen of this chapter. In case  such  person  or  persons  so   designated and authorized shall so consent to the execution and delivery   of  such  bond and mortgage or note and mortgage but on condition that a   sum of money be deposited with the clerk of such county, and such sum is   so deposited, the county clerk, upon such payment, shall forthwith enter   upon the lien docket, indexed with the name  of  the  owner,  the  facts   relating  to such payment. A deposit of money made as prescribed in this   section shall be repaid to such owner or his assignee upon the discharge   or release of all mechanics' liens, judgments  and  attachments  against   the  property.  All  deposits  of money made as provided in this section   shall be considered as paid into court  and  shall  be  subject  to  the   provisions  of  law  relative to the payment of money into court and the   surrender of such money by order of the court. The court  shall  in  any   action  brought to foreclose any of such liens, or in any action brought   to recover such deposit or any part thereof, direct the payment of  such   sum  so  deposited  to the persons whose mechanics' liens, judgments, or   claims secured by attachment shall have been established  on  the  trial   and  the  amount  so  paid shall be credited upon such mechanics' liens,   judgments and claims. Upon such filing of such consent, as  hereinbefore   provided,  the lien of all judgments and attachments affecting such real   property and all claims and liens acquired in any proceedings upon  such   judgments  shall  be  subordinate  in  like manner and to like extent as   hereinbefore  in  this  section  provided  for  the   subordination   of   mechanics' liens, and any attachment issued or judgment recovered upon a   claim, which, in whole or in part, is not for materials furnished, labor   performed  or moneys advanced for the improvement of such property shall   be subordinate to all  mechanics'  liens  thereon,  and  shall  also  be   subordinate  to all judgments recovered upon and attachments issued upon   claims for materials furnished, labor performed or moneys  advanced  for   the  improvement  of  such real property. Any lienor having a mechanic's   lien against real property may subordinate such lien to  any  subsequent   mortgage  thereon  by  a certificate duly acknowledged or proved stating   that such lien is subordinated, which certificate shall be filed in  the   office  where the notice of lien is filed. Upon filing such certificate,   the county clerk in the office where the same is filed  shall  note  the    fact  of  such  filing  in  the  "lien  docket"  in  the  column  headed   "proceedings had," opposite the docket of such lien.