N.Y. Public Health Law § 2879: Foreclosures and judgments

§ 2879. 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 agency shall have loaned on a mortgage which is

a lien upon any such property, such 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 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 an eligible borrower 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 eligible

borrower except upon sixty days' written notice to the commissioner and

the agency. 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.