New York Laws
Article 7-A - Community Senior Citizens Centers and Services Companies
363 - Foreclosures and Judgments.

§ 363. Foreclosures and judgments. 1. In any foreclosure action the
commissioner shall be made a party defendant. He shall take all steps
necessary to protect the interests of the public therein and no costs
shall be awarded against him or the department. Foreclosures shall not
be decreed unless the court to which application is made shall be
satisfied that the interests of the lienholder or holders cannot be
adequately assured except by the sale of the property. In any such
proceeding, the court shall be authorized to appoint the commissioner as
receiver of the property, or to grant such other and further relief as
may be reasonable and proper.

2. Notwithstanding the foregoing provisions of this section, wherever
it shall appear that the New York state housing finance agency shall
have made a mortgage loan which is a first lien upon any such property,
such New York state housing finance agency shall have all the remedies
available to a mortgagee under the laws of the state of New York, free
from any restrictions contained in this section, except that the
commissioner shall be made a party defendant and he shall take all steps
necessary to protect the interests of the public and no costs shall be
awarded against him or the department.

3. In the event of a judgment against a company in any action not
pertaining to the collection of a mortgage indebtedness, there shall be
no sale of any of the real property of such company except upon sixty
days' written notice to the commissioner and the New York state housing
finance agency. Upon receipt of such notice the commissioner and the
agency shall take such steps as in their judgment may be necessary to
protect the rights of all parties.