NY Real Prop L § 271 (2021)
2021 New York Laws RPP - Real Property Article 8 - Conveyances and Mortgages 271 - Construction of Covenants in Mortgages on Leases of Real Property and Bonds or Notes.

§  271.  Construction  of  covenants  in  mortgages  on leases of real   property and bonds or notes. In mortgages on leases of real property and   in bonds or notes secured thereby, the following or similar covenants or   agreements must be construed as follows:1. In default of payment,  mortgagee  to  have  power  to  sell.---  A   covenant  that  the mortgagor "will pay the indebtedness, as provided in   the mortgage, and if default be made in the payment of any part thereof,   the mortgagee or obligee shall have power to sell the  premises  therein   described,  according  to  law,"  must  be construed as meaning that the   mortgagor or obligor shall well and truly  pay  unto  the  mortgagee  or   obligee  the  said  sum  of money mentioned in the condition of the said   bond, note or obligation, and the interest  thereon,  according  to  the   condition  of the said bond, note or obligation. And if default shall be   made in the payment of the said sum of money therein  mentioned,  or  in   the  interest which shall accrue thereon, or of any part of either, that   then and from thenceforth it shall be lawful for the said  mortgagee  or   obligee,  his legal representative or assigns, to sell, transfer and set   over, all the rest, residue and remainder of the said term of years then   yet to come, and all other, the right, title and interest  of  the  said   mortgagor  or  obligor  of,  in  and  to  the  same,  at public auction,   according to the act in such case made and provided. And as the attorney   of the said mortgagor or obligor for that purpose by these presents duly   authorized, constituted  and  appointed,  to  make,  seal,  execute  and   deliver  to  the  purchaser or purchasers thereof, a good and sufficient   assignment, transfer or other  conveyance  in  the  law,  for  the  said   premises, with the appurtenances; and out of the money arising from such   sale,  to  retain  the principal and interest which shall then be due on   the said bond, note or obligation, together with the costs  and  charges   of  advertisement  and sale of the said premises, rendering the overplus   of the purchase-money (if any there shall be) unto the said mortgagor or   obligor, his legal representatives or assigns;  which  sale,  so  to  be   made,  shall forever be a perpetual bar, both in law and equity, against   the said mortgagor or obligor, and against all persons  claiming  or  to   claim  the  premises or any part thereof, by, from or under him or them,   or any of them.2. Mortgagor to  keep  buildings  insured.---  A  covenant  "that  the   mortgagor  will  keep the buildings on the said premises insured against   loss by fire, for the benefit of the mortgagee," must  be  construed  as   meaning  that  the  said  mortgagor  or  obligor shall and will keep the   buildings erected and to be  erected  upon  the  lands  above  conveyed,   insured  against loss and damage by fire, by insurance, and in an amount   approved by the said mortgagee or obligee and his  assigns,  and  either   assign  the  policy and certificates thereof or have such insurance made   payable to the said mortgagee or obligee or his assigns, and in  default   thereof  it  shall  be  lawful for the said mortgagee or obligee and his   assigns to effect such insurance, and the premium and premiums paid  for   effecting the same shall be a lien on the said mortgaged premises, added   to the amount of the said bond, note or obligation, and secured by these   presents, and payable on demand, with legal interest.3.  Mortgagor  to pay rent and charges on premises.--- A covenant that   the mortgagor "will pay the rent and other charges mentioned in and made   payable by said indenture of lease within ....... days after  said  rent   or  charges  are  payable,"  must  be construed as meaning that the said   mortgagor or obligor and his legal representatives and assigns, will pay   or cause to be paid, and discharge all rent and rents mentioned  in  and   made  payable  by  the indenture of lease aforesaid, and also all taxes,   assessments or other charges that now are a lien, or hereafter shall  or   may  be  levied, assessed or imposed and become a lien upon the premises    above described or any part thereof; and in  default  thereof,  for  the   space  of  .......  after such taxes or assessments or ....... after the   said rent or rents, or any of them shall have become due and payable  by   the  terms of said lease or by law, then and in each and every such case   the said mortgagee or obligee, his legal representatives or assigns may,   at  option,  and  without  notice,  pay  such  rent  or  rents,   taxes,   assessments  or  other charges and expenses, and the amount so paid, and   interest thereon, from the time of such payment, shall forthwith be  due   and   payable   from   the   said   mortgagor   or  obligor,  his  legal   representatives or assigns, to the said mortgagee or obligee, his  legal   representatives  or  assigns, and shall be deemed to be secured by these   presents, and shall be collectable in the same manner, and at  the  same   time,  and  upon  the same conditions as the interest then next maturing   upon the principal sum hereinbefore mentioned.4. Agreement that whole sum shall become due.--- The words "And it  is   hereby  expressly  agreed that the whole of the said principal sum shall   become due at the option of said mortgagee or obligee after  default  in   the  payment  of  any  instalment  of  principal or after default in the   payment of interest for ....... days, or after default in the payment of   any rent or other charge made payable by said  indenture  of  lease  for   ........  days, or after default in the payment of any tax or assessment   for ....... days after notice and demand," must be construed as  meaning   that  should  any  default  be  made in the payment of any instalment of   principal or any part thereof, or of said interest or any part  thereof,   or  of any rent or other charge made payable by said indenture or lease,   on any day whereon the same is  made  payable,  or  should  any  tax  or   assessment,  which  now is or may be hereafter imposed upon the premises   hereinafter described, become due  and  payable,  and  should  the  said   interest,  rent  or  other charge aforesaid, remain unpaid and in arrear   for the space of ....... days, or such tax or assessment  remain  unpaid   and  in arrear for ....... days after written notice by the mortgagee or   obligee, his executors, administrators or  assigns,  that  such  tax  or   assessment  is unpaid, and demand for the payment thereof, then and from   thenceforth, that is to say, after the  lapse  of  either  one  of  said   periods,  as  the  case  may  be,  the aforesaid principal sum, with all   arrearage of interest thereon,  rent  and  other  charges  paid  by  the   mortgagee  or  obligee,  shall,  at  the option of the said mortgagee or   obligee, his executors, administrators or assigns, become and be due and   payable immediately thereafter, although the period  above  limited  for   the  payment  thereof  may not then have expired, anything thereinbefore   contained to the contrary thereof in anywise notwithstanding.