N.Y. Real Property Actions & Proceedings Law § 1325: Receiver

§ 1325. Receiver. 1. Where the action is for the foreclosure of a

mortgage providing that a receiver may be appointed without notice,

notice of a motion for such appointment shall not be required.

2. Where a receiver has been appointed, upon the application of the

plaintiff or of any holder of a certificate evidencing an undivided

interest in the mortgage or mortgage debt and upon proof that no answer

has been interposed affecting the validity of the mortgage or the amount

due thereon, or asserting any prior lien, or asserting a plea of tender

of payment of the amount due, or which if sustained would affect in any

way the right of the plaintiff to a judgment in foreclosure and to the

payment of the amount claimed by the plaintiff in his complaint to be

due, the court may direct that the receiver of the rents appointed in

such action apply, during the pendency of the action, the rents received

by him towards the payment of accrued interest on the mortgage, provided

due provision shall have been made for the payment of taxes,

administration expenses, fees and charges and such reserve as the court

may direct. Any monies so paid over by the receiver shall be deducted

from the amount of the judgment in said action.

2-a. Where a receiver has been appointed, the order of appointment

shall direct the owner or lessee of the mortgaged premises to turn over

to the receiver all security deposits received by such owner or lessee

and shall further direct the receiver to hold the security subject to

such disposition thereof as shall be provided in a further order of the

court to be made and entered in the foreclosure action, in accordance

with the provisions of section 7-105 of the general obligations law.

3. In a city with a population of one million or more persons an order

appointing a receiver to receive the rents and profits of a multiple

dwelling shall provide that the receiver:

(a) register with any municipal department as provided by applicable

law; and

(b) expend rents and income and profits as described in subdivision

two of this section, except that a priority shall be given to the

correction of immediately hazardous and hazardous violations of housing

maintenance laws within the time set by orders of any municipal

department, or, if not practicable, seek a postponement of the time for

compliance.