N.Y. Multiple Dwelling Law § 302-b: Removal of violations by mortgagees

§ 302-b. Removal of violations by mortgagees. 1. Notwithstanding any

other provision of law, where a receiver has been appointed in

foreclosure proceedings instituted by a mortgagee with respect to any

multiple dwelling, such mortgagee may advance to such receiver funds

necessary for the operation of such multiple dwelling and for the making

of repairs therein necessary to remove conditions constituting

violations of this chapter. Such receiver shall, to the extent possible,

repay any and all such advances from income received by him with respect

to the property and, if such income is insufficient to permit complete

repayment of such advances, any amounts which cannot be so repaid, with

interest, shall be added to the amount of the lien of such mortgagee

upon entry of a foreclosure judgment, provided, however, that such

amounts shall not be the basis for any additional personal liability on

the part of the mortgagor.

2. Notwithstanding any other provisions of law, a mortgagee advancing

funds to a receiver pursuant to subdivision one of this section shall be

liable only for gross and willful negligence with respect to any repair

made at his direction and with funds so advanced.