New York Laws
Article 5 - Redevelopment Companies
122 - Transfer of Title or Foreclosure of Project.

§ 122. Transfer of title or foreclosure of project. 1. Until the
termination of the tax exemption, whether by expiration or by any other
cause, a redevelopment company, heretofore or hereafter organized, shall
not have power to sell the real property constituting the project or any
portion or portions thereof without the consent of the local legislative
body.

2. If an action be brought to foreclose a mortgage or tax lien upon a
redevelopment project, heretofore or hereafter authorized pursuant to
this article, and the real property constituting the project shall be
acquired at the foreclosure sale or from the mortgagee or lienor that
had acquired the property of such sale, or by a conveyance in lieu of
such sale, by a redevelopment company organized pursuant to this
article, or by the federal government or an instrumentality thereof, or
by a corporation which is, or by agreement has become subject to the
supervision of the superintendent of financial services, such successor
in interest shall acquire such project subject to all provisions of the
contract regulating such project and shall be entitled to all of the
benefits contained in such contract. In all other cases of sale at
foreclosure or forced sale, the real property constituting the project
or any portion or portions thereof shall be sold free of all
restrictions, except such covenants running with the land as may be
contained in the contract regulating the project, or in the deed, if
any, given by the municipality to the redevelopment company affecting
all or any portion of the real property upon which the project is
situated, and the tax exemption, if any, theretofore granted to such
project pursuant to such contract shall immediately terminate.