N.Y. Private Housing Finance Law § 363: Foreclosures and judgments

§ 363. Foreclosures and judgments. 1. In any foreclosure action the

commissioner shall be made a party defendant. He shall take all steps

necessary to protect the interests of the public therein and no costs

shall be awarded against him or the department. Foreclosures shall not

be decreed unless the court to which application is made shall be

satisfied that the interests of the lienholder or holders cannot be

adequately assured except by the sale of the property. In any such

proceeding, the court shall be authorized to appoint the commissioner as

receiver of the property, or to grant such other and further relief as

may be reasonable and proper.

2. Notwithstanding the foregoing provisions of this section, wherever

it shall appear that the New York state housing finance agency shall

have made a mortgage loan which is a first lien upon any such property,

such New York state housing finance agency shall have all the remedies

available to a mortgagee under the laws of the state of New York, free

from any restrictions contained in this section, except that the

commissioner shall be made a party defendant and he shall take all steps

necessary to protect the interests of the public and no costs shall be

awarded against him or the department.

3. In the event of a judgment against a company in any action not

pertaining to the collection of a mortgage indebtedness, there shall be

no sale of any of the real property of such company except upon sixty

days' written notice to the commissioner and the New York state housing

finance agency. Upon receipt of such notice the commissioner and the

agency shall take such steps as in their judgment may be necessary to

protect the rights of all parties.