N.Y. Real Property Actions & Proceedings Law § 777: Application by mortgagee or lienor of record or other person having an interest in the property

§ 777. Application by mortgagee or lienor of record or other person

having an interest in the property. a. If, after a trial, the court

shall determine that the facts alleged in the petition have been

affirmatively established by the petitioners, that no defense thereto

specified in section seven hundred seventy-five of this article has been

affirmatively established by the owner or a mortgagee or lienor of

record, and that the facts alleged in the petition warrant the granting

of the relief sought, and if the owner or any mortgagee or lienor of

record or other person having an interest in the property, shall apply

to the court to be permitted to remove or remedy the conditions

specified in such petition and shall (1) demonstrate the ability

promptly to undertake the work required; and (2) post security for the

performance thereof within the time, and in the amount and manner,

deemed necessary by the court, then the court, in lieu of rendering

judgment as provided in section seven hundred seventy-six of this

article, may issue an order permitting such person to perform the work

within a time fixed by the court but in no event more than sixty days

from the date of the order of the court unless the court grants an

extension of time for good cause shown. The provisions of this

subdivision shall only be available to the mortgagee or lienor once with

respect to any petition filed pursuant to this article.

b. If, after the issuance of an order pursuant to subdivision a of

this section, but before the time fixed in such order for the completion

of the work prescribed therein, it shall appear to the petitioners that

the person permitted to do the same is not proceeding with due

diligence, the petitions may apply to the court on notice to those

persons who have appeared in the proceeding for a hearing to determine

whether judgment should be rendered immediately as provided in

subdivision c of this section.

c. If, upon a hearing authorized in subdivision b hereof, the court

shall determine that such owner, mortgagee, lienor or other person is

not proceeding with due diligence, or upon the failure of such owner,

mortgagee, lienor or other person to complete the work in accordance

with the provisions of said order, the court shall render a final

judgment appointing an administrator as authorized in section seven

hundred seventy-eight of this article. Such judgment shall direct the

administrator to apply the security posted by such person to the

removing or remedying of the condition or conditions specified in the

petition. In the event that the amount of such security should be

insufficient for such purpose, such judgment shall direct the deposit of

rents with the administrator, as authorized by section seven hundred

seventy-six of this article, to the extent of such deficiency. In the

event that such security should exceed the amount required to remove or

remedy such condition or conditions, such judgment shall direct the

administrator to file with the court, upon completion of the work

prescribed therein, a full accounting of the amount of such security and

the expenditures made pursuant to such judgment, and to turn over such

surplus to the person who posted such security, together with a copy of

such accounting.