New York Laws
Article 4 - Limited Dividend Housing Companies
91 - Proceedings Against Housing Companies.

§ 91. Proceedings against housing companies. 1. Whenever the
commissioner shall be of the opinion that a housing company is failing
or omitting, or is about to fail or omit to do anything required of it
by law or by order of the commissioner or is doing or is about to do
anything, or permitting anything, or is about to permit anything to be
done, contrary to and in violation of law or of any order of the
commissioner, or which is improvident or prejudicial to the interest of
the public, the lienholders, the shareholders, partners, beneficiaries
or the tenants, the commissioner shall commence an action or proceeding
in the supreme court of the state of New York in the name of the
commissioner, in accordance with the provisions of the civil practice
law and rules for the purpose of having such violations or threatened
violations stopped and prevented, and in such action or proceeding, the
court may appoint a temporary or permanent receiver or both. Such action
or proceeding shall be commenced by a petition to the supreme court,
alleging the violation complained of and praying for appropriate relief.
It shall thereupon be the duty of the court to specify the time, not
exceeding twenty days after service of a copy of the petition, within
which the housing company complained of must answer the petition. In
case of default in answer or after answer the court shall immediately
inquire into the facts and circumstances in such manner as the court
shall direct without other or formal pleadings, and without respect to
any technical requirements. Such other persons or corporations as it
shall seem to the court necessary or proper to join as parties in order
to make its order or judgment effective, may be joined as parties. The
final judgment in any such action or proceeding shall either dismiss the
action or proceeding or direct that an order or an injunction, or both,
issue, or provide for the appointment of a receiver as prayed for in the
petition, or grant such other relief as the court may deem appropriate.

2. In the event that a municipality shall make a loan to a housing
company, the municipality, as well as the commissioner, shall have the
powers enumerated in subdivision one of this section.