2023 New York Laws › PBG - Public Housing › Article 3 - Municipal Housing Authorities › 50 - Foreclosure and Other Remedies Against an Authority.

§  50.  Foreclosure and other remedies against an authority.  1. In an
action  or  proceeding  to  foreclose  a  mortgage  on  property  of  an
authority,  the authority and the municipality, in addition to all other
necessary parties, shall be made parties defendant and shall  take  such
steps  in said action as may be necessary to protect the public interest
therein and no costs shall be awarded against them.  Wherever under  the
instrument creating a lien a notice of default in writing is required to
be  served  upon  an  authority  before the institution of a foreclosure
action or proceeding, a copy of such notice shall  be  served  upon  the
municipality   at  least  five  days  before  the  institution  of  such
proceedings. At such a sale of the property of the authority pursuant to
foreclosure or other proceedings,  the  municipality  may  purchase  the
property affected; or, it may, prior to the institution of a foreclosure
action  or  proceeding,  or  during such action or proceeding, make such
payment or take such other  steps  as  may  be  necessary  to  cure  any
defaults  that  may  have occurred and such steps as may be necessary to
protect the property of an authority and the public interest.
2. In addition to any other rights and remedies, but subject  to  such
limitations  as  may  be  made  by  contract,  any  obligee,  lessor  or
mortgagee, or any trustee  or  agent  designated  in  the  bonds  of  an
authority  or  under  a resolution, mortgage or indenture executed by an
authority as security for its bonds may:
(a) by mandamus or other suit, action  or  proceeding  at  law  or  in
equity  compel  the  authority to perform each and every term, provision
and covenant contained  in  any  agreement  of  the  authority  with  an
obligee, trustee, mortgagee or lessor and require the performance of any
or  all such covenants and agreements of the authority and of the duties
imposed upon the authority by this article;
(b) by action or suit in equity, enjoin any acts or things  which  may
be  unlawful  or  in  violation  of the rights of such obligee, trustee,
mortgagee or lessor;
(c)  by  suit,  action  or  proceeding  in  any  court  of   competent
jurisdiction  compel possession of any project or any part thereof to be
surrendered to such obligee, trustee, mortgagee, agent or lessor  having
the right to such possession under any agreement with the authority;
(d)   by  suit,  action  or  proceeding  in  any  court  of  competent
jurisdiction obtain the appointment of a receiver of any project of  the
authority or any part thereof and of the rents and profits therefrom. If
such  receiver  be  appointed,  he may enter and take possession of such
project or any part or parts thereof and operate and maintain the  same,
and  collect  and  receive  all  fees, rents, revenues, or other charges
thereafter arising therefrom in the same manner as the authority  itself
might  do,  and shall keep such moneys in a separate account or accounts
and apply the same in accordance with the obligations of  the  authority
as the court shall direct;
(e)  by action or suit in equity require an authority to account as if
it were the trustee of an express trust.