N.Y. Private Housing Finance Law § 504: Re-entry of lands sold or leased

§ 504. Re-entry of lands sold or leased. 1. After the expiration of

one year from the sale or lease of real property by the municipality to

a housing company, the municipality shall have the right of re-entry in

the manner hereinafter provided. Such right of re-entry may, where the

property has been sold, be exercised at any time prior to twenty years

after such sale, or where the property has been leased, at any time

prior to the termination of the lease. The local legislative body may

by resolution determine to re-enter the real property of any housing

company which has purchased or leased property from the municipality.

2. A certified copy of such resolution shall be filed in the office of

the county clerk or register in which the deed or lease of such property

is recorded, and shall be served upon the housing company and also upon

all obligees, mortgagees or holders of liens upon the real property or

upon any interest therein. Upon the filing of such resolution all

indebtedness of the housing company shall become immediately due and

payable.

3. The municipality shall, within ninety days after the filing of the

resolution to re-enter, or as soon thereafter as may be feasible, pay to

the company a sum which, together with the assets of such company, shall

be sufficient to discharge all the indebtedness of the company, pay the

reasonable expenses of liquidation and dissolution and return to the

holders of stock and debentures then outstanding, the par value thereof

plus interest at the rate of six per centum per annum and any accrued

and unpaid dividends or interest on such outstanding stock and

debentures.

4. Upon the making of such payment the housing company shall deliver

to the municipality proper instruments evidencing the cancellation of

the indebtedness and the surrender of the rights of the company and

thereupon the repossession by the municipality shall be complete.

5. In the event of a foreclosure of a mortgage or other lien held by

any other person, bodies, institutions, associations, or corporations

specified in section eighty-one the right of re-entry by the

municipality shall terminate upon the entry of a judgment of foreclosure

and sale.