2023 New York Laws › RPA - Real Property Actions and Proceedings › Article 7-A - Special Proceedings by Tenants of Dwellings in the City of New York and the Counties of Nassau, Suffolk, Rockland and Westchester for Judg › 777 - Application by Mortgagee or Lienor of Record or Other Person Having an Interest in the Property.

§  777.  Application  by mortgagee or lienor of record or other person
  having an interest in the property. a. If,  after  a  trial,  the  court
  shall  determine  that  the  facts  alleged  in  the  petition have been
  affirmatively established by the petitioners, that  no  defense  thereto
  specified in section seven hundred seventy-five of this article has been
  affirmatively  established  by  the  owner  or  a mortgagee or lienor of
  record, and that the facts alleged in the petition warrant the  granting
  of  the  relief  sought,  and if the owner or any mortgagee or lienor of
  record or other person having an interest in the property,  shall  apply
  to  the  court  to  be  permitted  to  remove  or  remedy the conditions
  specified in  such  petition  and  shall  (1)  demonstrate  the  ability
  promptly  to  undertake the work required; and (2) post security for the
  performance thereof within the time,  and  in  the  amount  and  manner,
  deemed  necessary  by  the  court,  then the court, in lieu of rendering
  judgment as provided  in  section  seven  hundred  seventy-six  of  this
  article,  may  issue an order permitting such person to perform the work
  within a time fixed by the court but in no event more  than  sixty  days
  from  the  date  of  the  order  of the court unless the court grants an
  extension  of  time  for  good  cause  shown.  The  provisions  of  this
  subdivision shall only be available to the mortgagee or lienor once with
  respect to any petition filed pursuant to this article.
b.  If,  after  the  issuance of an order pursuant to subdivision a of
  this section, but before the time fixed in such order for the completion
  of the work prescribed therein, it shall appear to the petitioners  that
  the  person  permitted  to  do  the  same  is  not  proceeding  with due
  diligence, the petitions may apply to  the  court  on  notice  to  those
  persons  who  have appeared in the proceeding for a hearing to determine
  whether  judgment  should  be  rendered  immediately  as   provided   in
  subdivision c of this section.
c.  If,  upon  a hearing authorized in subdivision b hereof, the court
  shall determine that such owner, mortgagee, lienor or  other  person  is
  not  proceeding  with  due diligence, or upon the failure of such owner,
  mortgagee, lienor or other person to complete  the  work  in  accordance
  with  the  provisions  of  said  order,  the  court shall render a final
  judgment appointing an administrator  as  authorized  in  section  seven
  hundred  seventy-eight  of  this article. Such judgment shall direct the
  administrator to apply  the  security  posted  by  such  person  to  the
  removing  or  remedying  of the condition or conditions specified in the
  petition. In the event that  the  amount  of  such  security  should  be
  insufficient for such purpose, such judgment shall direct the deposit of
  rents  with  the  administrator,  as authorized by section seven hundred
  seventy-six of this article, to the extent of such  deficiency.  In  the
  event  that such security should exceed the amount required to remove or
  remedy such condition or conditions,  such  judgment  shall  direct  the
  administrator  to  file  with  the  court,  upon  completion of the work
  prescribed therein, a full accounting of the amount of such security and
  the expenditures made pursuant to such judgment, and to turn  over  such
  surplus  to the person who posted such security, together with a copy of
  such accounting.