NY Real Prop Actions L § 1641 (2021)
2021 New York Laws RPA - Real Property Actions and Proceedings Article 16 - Judicial Authorization of Sale, Lease, Mortgage, Acquisition, Exchange or Voluntary Partition 1641 - Executors', Fiduciaries' and Trustees' Conveyances to Certain Corporations in Exchange for Certain Stocks and Bonds Authorized and Regulated.

§  1641. Executors', fiduciaries' and trustees' conveyances to certain   corporations in exchange for certain stocks  and  bonds  authorized  and   regulated.  1.  Whenever  an  executor,  trustee, guardian of an infant,   committee of a person incompetent to  manage  himself  or  his  affairs,   conservator  of a person unable to care for his affairs, or other person   or persons acting  in  a  fiduciary  capacity,  or  a  life  tenant,  is   authorized to sell any real property or any interest therein pursuant to   a  power contained in a deed or will, or pursuant to a judgment or order   of the supreme court in an action or special proceeding pursuant to  any   provision  of  law, or pursuant to a statutory power to sell or exchange   any real property, or any interest therein, or whenever a trustee of  an   express  trust  is  seized  of  a  legal  title to an undivided share or   interest in any real property, and the said  property  has  been  or  is   about  to  be  conveyed to a corporation formed or to be formed for such   purpose, and two-thirds in number and amount of interest  of  the  adult   beneficiaries  and  also  two-thirds in number and amount of interest of   the adult persons having a vested  interest  or  estate  in  possession,   reversion  or  remainder in such real property have agreed, or desire to   agree that their interests and estates shall be exchanged for the  stock   and  bonds  or  either  the stock or bonds of such corporation, then the   said executor, trustee, guardian, committee, conservator or other person   or persons acting in  a  fiduciary  capacity,  or  the  life  tenant  or   tenants,  may,  with the approval of the supreme court, convey such real   property or interest to such corporation in exchange for  the  stock  or   bonds  of such corporation, or a proportionate amount thereof, provided,   however, that such corporation shall be prohibited by its certificate of   incorporation from investing in any stocks, bonds  or  other  securities   other  than  real  property which are not under the laws of this state a   proper subject for the investment of trust funds, and  provided  further   that  if  the  interest  of a trust estate in any real property to be so   exchanged is an undivided part or share therein, such undivided part  or   share  of the trust estate may be so exchanged if it shall appear to the   court to be for the best interest of such estate.2. The supreme court shall not  grant  an  order  permitting  such  an   exchange  and  conveyance  unless it appears to the satisfaction of such   court  that  a  written  notice  stating  the  time  and  place  of  the   application  for  such  leave has been served upon every beneficiary and   also upon every person in being having a vested interest  or  estate  in   possession, reversion or remainder, in such real property at least eight   days  before  the making thereof, if such beneficiary or other person is   an adult within the state; or if a minor, incompetent,  conservatee,  or   absentee, until proof of the service on such beneficiary or other person   of such notice as the court or a justice thereof prescribes.3. The court shall appoint a guardian for any minor and for any person   unable  to manage himself or his affairs who shall not be represented by   a committee or conservator duly appointed.4. The application must be by petition duly verified, must be made  by   the executor, trustee, guardian of an infant, committee, conservator, or   such  other  person or persons acting in a fiduciary capacity, or a life   tenant who has been so authorized to sell or exchange, or by the trustee   of an express trust seized of a legal title to  an  undivided  share  or   interest  in  real  property;  and  shall set forth the reasons for such   exchange and conveyance and the nature thereof and  the  peculiar  facts   which make it proper that the application shall be granted, but when the   interest  of a trust estate in any real property is an undivided part or   share thereof, it shall be sufficient to show by such petition that  the   exchange  will  be  for  the best interests of such estate. After taking   proof of the facts either before the court or a referee, and hearing the    parties and fully examining into  the  matter,  the  court  must  direct   judgment  upon  the application. In case the application is granted, the   judgment must authorize the  said  executor,  trustee,  guardian  of  an   infant,  committee,  conservator, or other person or persons acting in a   fiduciary capacity or life tenant, to make such exchange and  conveyance   upon such terms and conditions as the court may therein prescribe.5.  Whenever  it  shall  appear  from  the  papers  submitted upon the   application  that  there  are  conflicting  claims  in  respect  to  the   ownership  of  or the right to sell and convey such real property or any   interest therein, the  court  may,  within  the  demand  for  relief  as   evidenced  by the notice of application, and if all adult beneficiaries,   and also all adult  persons  having  a  vested  interest  or  estate  in   possession,  reversion  or  remainder  in  such real property under such   conflicting claims consent thereto, direct that the stock and  bonds  or   either the stock or bonds to be given by the corporation in exchange for   such  real property or interest therein shall be issued to and held by a   trust company authorized to hold moneys paid into court upon such  terms   and  conditions  and with such powers as the court shall prescribe until   the further order of the court.