NY Real Prop Actions L § 1921-A (2021)
2021 New York Laws RPA - Real Property Actions and Proceedings Article 19 - Discharge or Extinguishment of Encumbrances, Claims and Interests 1921-A - Partial Release From Lien of Mortgaged Premises.

§ 1921-a. Partial release from lien of mortgaged premises. 1. Whenever   the owner of mortgaged property situate in this state shall be entitled,   pursuant  to  the  terms  of  the mortgage encumbering such property, to   obtain the release of a portion thereof from the lien of such  mortgage,   then,  upon  (1)  delivery  by  such owner to the mortgagee of a partial   release from lien of mortgaged  premises,  in  a  form  entitled  to  be   recorded,  describing  the portion of the mortgaged premises so entitled   to be released, together with the fees allowed by law for the taking  of   the  acknowledgment of a deed, (2) proof that all requirements set forth   in such mortgage as conditions precedent to the execution  and  delivery   by  the  mortgagee  of such partial release have been satisfied, and (3)   payment, or tender of payment, to the mortgagee  of  all  sums  required   under  the  terms  of  the  mortgage  to  be paid to obtain such partial   release, such mortgagee must execute and  acknowledge  before  a  proper   officer,  in  like manner as to entitle a conveyance to be recorded, the   partial release theretofore delivered to such mortgagee  or  such  other   partial release from lien of mortgaged premises as may be required to be   executed  under  the  terms  of  the mortgage, which release shall be in   recordable form.2. Upon the failure or refusal of any such mortgagee  to  comply  with   the  foregoing  provisions  of  this section, any owner of the mortgaged   premises may apply to the supreme court or a justice thereof, or to  the   county  court  or  a  judge  thereof,  in  or of any county in which the   mortgaged premises or any part thereof are situated in whole or in part,   upon a petition, for an order to show cause why an order should  not  be   made  by  such  court releasing of record from the lien of said mortgage   the parcel or parcels of land described in said release,  and  directing   the  register  or  clerk of any county in whose office the same may have   been recorded to mark the same upon his records as released  as  to  the   parcel  or  parcels  described  in  such order, and further ordering and   directing that the debt or other obligation secured by the  mortgage  be   reduced in the amount tendered or paid, upon condition that in the event   such mortgage or part thereof is not paid, the sums tendered pursuant to   the  foregoing  provisions  of  this  section  be  paid  to  the officer   specified by law to hold court funds and moneys deposited  in  court  in   the  county  wherein  the mortgaged premises are situated in whole or in   part for the purpose of paying said sum  over  to  the  mortgagee.  Said   petition  must  be  verified in like manner as a verified pleading in an   action in the supreme court and it must set forth  the  grounds  of  the   application.3.  In any case where an actual tender, as provided in subdivision one   of this section, cannot, with due diligence, be made, any owner  of  the   mortgaged  premises may apply to the supreme court or a justice thereof,   or to the county court or a judge thereof, in or of any county in  which   the  mortgaged premises, or any part thereof are situated in whole or in   part, upon petition setting forth the grounds  of  the  application  and   verified  as  aforesaid,  for an order to show cause why an order should   not be made by said court releasing of  record  the  parcel  or  parcels   described  in  said release from the lien of the mortgage, and directing   the register or clerk of every county in which  the  mortgaged  premises   are  located  to  mark  the  same upon his records as released as to the   parcel or parcels described in  such  order  and  further  ordering  and   directing  that  the debt or other obligation secured by the mortgage be   reduced, upon  condition  that  the  prerequisites  for  obtaining  such   release  set forth in subdivision one of this section and the sum of the   mortgage required to be paid pursuant to the  terms  and  conditions  of   said  mortgage  and  fees allowed by law or the mortgage, be paid to the   officer specified by law to hold court funds  and  moneys  deposited  in    court in the county wherein the mortgaged premises are situated in whole   or in part until such time as said sums may be claimed by the mortgagee.4.  Eight  days'  notice  of  the application for either of the orders   provided for in subdivisions two and three  of  this  section  shall  be   given to the mortgagee. Such notice shall be given in such manner as the   court  or the judge or justice thereof to whom the petition is presented   may direct, and said court or judge or justice may require  such  longer   notice  to be given as may seem proper. If sufficient cause be shown the   court or judge or justice thereof may issue such  order  to  show  cause   returnable in less than eight days.5.  Upon  the  return day of such order to show cause, the court, upon   proof of due service thereof  and  on  proof  of  the  identity  of  the   mortgagee  and  of the person presenting the petition, shall inquire, in   such manner as it may deem advisable, into the truth of  the  facts  set   forth in the petition, and in case it shall appear that said sum or sums   required to be paid pursuant to the terms and conditions of the mortgage   and  the  fees  allowed  by  law have been duly paid or tendered but not   accepted, said partial release from lien of mortgage instrument has been   duly presented for execution, or that such tender and presentation could   not have  been  made  with  due  diligence  and  the  prerequisites  for   obtaining  such  release as set forth in subdivision one of this section   have been met, then, in the event that  portion  of  the  lien  of  such   mortgage  required  to  be released pursuant to the terms and conditions   thereof is not so released, the court shall make an order directing  the   sums  so  tendered,  or  in a case where such tender could not have been   made as aforesaid, directing the sum or sums so required  and  the  fees   allowed by law, to be paid to the officer specified by law to hold court   funds   and  moneys  deposited  in  court  in  the  county  wherein  the   application herein is made, and directing and ordering  that  upon  such   payment  the debt or other obligation secured by the mortgage be reduced   and further directing the register or clerk of every county in which the   mortgaged premises are located to mark said mortgage reduced  of  record   upon  the  production  and  delivery  to  such  register  or  clerk of a   certified copy of the order and the receipt of such officer showing that   the amount required by said order and which receipt shall  be  recorded,   filed  and indexed by any such register or clerk in the same manner as a   certificate of discharge of a release from lien of  mortgaged  premises.   Said  receipt need not be acknowledged to entitle it to be recorded. The   court in its discretion, when granting any such order after  application   therefor  pursuant  to  subdivision two of this section, may award costs   and reasonable attorneys' fees to the person making the application,  in   the  absence of the showing of a valid reason for the failure or refusal   to execute the partial release  from  lien  of  mortgaged  premises  and   deliver the same. The money deposited shall be payable to the mortgagee,   his  representatives  or  assigns,  less  any court costs and reasonable   attorneys' fees allowed by the court as herein provided which  shall  be   paid to the owner of the mortgaged premises who has made application for   the  order  herein  referred  to  upon  an order of the supreme court or   county court, directing the payment thereof  to  such  owner  upon  such   evidence as to his right to receive the same as shall be satisfactory to   the court.6.  Wherever  any register or clerk shall record any order and receipt   as hereinbefore specified, he shall mark the record of said mortgage, if   same be recorded, as follows:"Part of the premises herein described have been released from lien of   this  mortgage  by  order  of  the__________________court,   County   of   ___________,  dated___________and  filed____________a description of the   property so released being contained in such order"  and  thereupon  the    lien  of such mortgage shall be deemed to be released as to the premises   so described in such order and the debt or  obligation  secured  thereby   shall  be  deemed to be reduced as provided in such order. Said register   or  clerk  shall  be  permitted  to charge for recording and filing said   order and receipt, the same fees to which he is entitled  for  recording   and filing a certificate of release of lien of mortgaged premises.7.  The  word  "mortgagee"  whenever  used  in  this  section shall be   construed to include the persons entitled  to  enforce  or  satisfy  the   mortgage  and  the  personal representatives, successors and assigns, of   such persons.8. Nothing contained in this section shall limit or abridge any rights   or remedies otherwise available at law or in equity to the owner of  the   mortgaged  premises  or  any  other  person  having  an interest in such   mortgaged premises.