N.Y. General Obligations Law § 17-107: Effect of part payment on time limited for foreclosure of a mortgage

§ 17-107. Effect of part payment on time limited for foreclosure of a

mortgage. 1. A payment on account of a mortgage indebtedness, or

instalment thereof or interest thereon, which is effective to revive an

action to recover such indebtedness, instalment or interest or to extend

the time limited for such action, is also effective, between persons

described in subdivision two of this section, to make the time limited

for commencement of an action to foreclose the mortgage run from the

date of payment, unless the payment is accompanied by written disclaimer

of intention to affect the time limited for foreclosure of the mortgage.

2. A payment on account of the indebtedness secured by a mortgage of

real property as defined in section 17-105, or a mortgage of a lease of

real property, or on account of an instalment thereof or interest

thereon, is effective as provided in this section:

a. as against (1) the person who made it, to the extent of any

interest held by him at the date thereof, and (2) any person

subsequently acquiring from him any such interest, without giving value

or with actual notice of the making of the payment, to the extent of the

interest so acquired; and

b. in favor of (1) the mortgagee or his assignee, and (2) any person

who, after the date of the payment, succeeds or is subrogated to the

interest of either of them in the mortgage or otherwise acquires an

interest in the enforcement of the mortgage.

If the payment is made before expiration of the time limited for the

commencement of the action, it is also effective against any subsequent

purchaser of the interest of the person who made the payment, to the

extent of the interest that the person who made the payment had at the

time thereof.

3. No payment described in subdivision one of this section has any

greater effect, with respect to the time limited for foreclosure of the

mortgage, than that provided in this section.