N.Y. Public Health Law § 2866: Foreclosures and judgments

§ 2866. 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. 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 or the

New York state medical care facilities finance agency shall have loaned

on a mortgage which is a lien upon any such property, such New York

state housing finance agency or New York state medical care facilities

finance agency, as the case may be, 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 that the commissioner

shall take all steps necessary to protect the interests of the public

and no costs shall be awarded against him.

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 or the New York state medical care facilities finance

agency, as the case may be. Upon receipt of such notice the commissioner

and the agency shall take such steps as in its judgment may be necessary

to protect the rights of all parties.