N.Y. Mental Hygiene Law § 75.17: Mortgage loans

§ 75.17 Mortgage loans.

(a) Any company formed under this article may, subject to the approval

of the commissioner, borrow funds from the New York state housing

finance agency and secure the repayment thereof by bond or note and

mortgage which shall contain such terms and conditions as may be deemed

necessary or desirable by the New York state housing finance agency or

required by any agreement between the New York state housing finance

agency and the holders of its notes and bonds with respect to such

companies, including the right to assignment of rates and fees and entry

into possession in case of default, but the operation of such project,

in the event of such entry, shall be subject to regulations promulgated

by the commissioner.

(b) The New York state housing finance agency may make a contract to

make loans to companies not to exceed the total project cost. Any such

loan shall be secured by a first mortgage lien upon all the real

property and improvements of which the project consists and upon all

fixtures and articles of personal property attached to or used in

connection with the construction, acquisition, reconstruction,

rehabilitation, improvement, or operation of the project.

(c) Any inconsistent provision of law to the contrary notwithstanding,

mortgages of a company shall be exempt from the mortgage recording taxes

imposed by article eleven of the tax law.