N.Y. Private Housing Finance Law § 20: Mortgages, mortgage bonds and notes

§ 20. Mortgages, mortgage bonds and notes. 1. Any company, subject to

the approval of the commissioner or of the supervising agency, as the

case may be, may borrow funds and secure the repayment thereof by bond

or note and mortgage or by an issue of bonds under a trust indenture.

2. Each loan made to a company shall relate to one or more specified

projects and shall be secured by a mortgage upon all of the real

property of which the project or projects, to which the loan relates,

consists, and upon all fixtures and articles of personal property

attached to or used in connection with the operation of such project or

projects. Such mortgages may contain such other clauses and provisions

as shall be approved by the commissioner, or the supervising agency, as

the case may be, including the right to assignment of rents and entry

into possession in case of default; but the operation of such project or

projects, in the event of such entry by a mortgagee or receiver, except

in the case of a mortgage loan insured or held by the federal

government, shall be subject to regulations promulgated by the

commissioner or the supervising agency. Provisions for the amortization

of the mortgage indebtedness and residual indebtedness of companies

formed under this article shall be subject to the approval of the

commissioner or the supervising agency, as the case may be. In the case

of an instrument or instruments evidencing residual indebtedness issued

pursuant to section twenty-three-a or section forty-four-b of this

chapter, the principal amount of such instrument or instruments and the

interest thereon, if any, shall be repaid over a period of time not

exceeding the term over which the mortgage loan insured by the federal

government is to be repaid, plus ten years, which period of time shall

commence at such time as the commissioner or the supervising agency

shall approve, provided, however, that such period of time shall not

expire more than fifteen years after the mortgage loan insured by the

federal government has been satisfied.