New York Laws
Article 2 - Limited-Profit Housing Companies
20 - Mortgages, Mortgage Bonds and Notes.

§ 20. Mortgages, mortgage bonds and notes. 1. Any company, subject to
the approval of the commissioner or of the supervising agency, as the
case may be, may borrow funds and secure the repayment thereof by bond
or note and mortgage or by an issue of bonds under a trust indenture.

2. Each loan made to a company shall relate to one or more specified
projects and shall be secured by a mortgage upon all of the real
property of which the project or projects, to which the loan relates,
consists, and upon all fixtures and articles of personal property
attached to or used in connection with the operation of such project or
projects. Such mortgages may contain such other clauses and provisions
as shall be approved by the commissioner, or the supervising agency, as
the case may be, including the right to assignment of rents and entry
into possession in case of default; but the operation of such project or
projects, in the event of such entry by a mortgagee or receiver, except
in the case of a mortgage loan insured or held by the federal
government, shall be subject to regulations promulgated by the
commissioner or the supervising agency. Provisions for the amortization
of the mortgage indebtedness and residual indebtedness of companies
formed under this article shall be subject to the approval of the
commissioner or the supervising agency, as the case may be. In the case
of an instrument or instruments evidencing residual indebtedness issued
pursuant to section twenty-three-a or section forty-four-b of this
chapter, the principal amount of such instrument or instruments and the
interest thereon, if any, shall be repaid over a period of time not
exceeding the term over which the mortgage loan insured by the federal
government is to be repaid, plus ten years, which period of time shall
commence at such time as the commissioner or the supervising agency
shall approve, provided, however, that such period of time shall not
expire more than fifteen years after the mortgage loan insured by the
federal government has been satisfied.

Structure New York Laws