N.Y. Private Housing Finance Law § 122: Transfer of title or foreclosure of project

§ 122. Transfer of title or foreclosure of project. 1. Until the

termination of the tax exemption, whether by expiration or by any other

cause, a redevelopment company, heretofore or hereafter organized, shall

not have power to sell the real property constituting the project or any

portion or portions thereof without the consent of the local legislative

body.

2. If an action be brought to foreclose a mortgage or tax lien upon a

redevelopment project, heretofore or hereafter authorized pursuant to

this article, and the real property constituting the project shall be

acquired at the foreclosure sale or from the mortgagee or lienor that

had acquired the property of such sale, or by a conveyance in lieu of

such sale, by a redevelopment company organized pursuant to this

article, or by the federal government or an instrumentality thereof, or

by a corporation which is, or by agreement has become subject to the

supervision of the superintendent of financial services, such successor

in interest shall acquire such project subject to all provisions of the

contract regulating such project and shall be entitled to all of the

benefits contained in such contract. In all other cases of sale at

foreclosure or forced sale, the real property constituting the project

or any portion or portions thereof shall be sold free of all

restrictions, except such covenants running with the land as may be

contained in the contract regulating the project, or in the deed, if

any, given by the municipality to the redevelopment company affecting

all or any portion of the real property upon which the project is

situated, and the tax exemption, if any, theretofore granted to such

project pursuant to such contract shall immediately terminate.