N.Y. Real Property Law § 119: Purchase by mortgage trustee

§ 119. Purchase by mortgage trustee. Any banking corporation,

including corporations organized under the banking law and also national

banking associations authorized to act as trustees within this state,

which shall act as trustee, depository or in other representative or

fiduciary capacity in respect to any mortgage upon real property within

this state or upon some interest therein or in respect to any indenture

relating to such real property against which bonds or certificates of

parts or of shares have been issued to the public, may acquire such real

property in any foreclosure action now or hereafter pending; and in lieu

of paying cash therefor, may make settlement for the purchase price by

crediting upon the bond, mortgage or other obligation held by it, the

net proceeds of sale after deducting therefrom the expenses of the sale

and the costs of the action and any other sums which such trustee is

authorized to deduct under the mortgage, deed of trust or indenture. The

officer making such foreclosure sale shall accept such settlement

without requiring the production of the bonds, notes, certificates of

sharing, certificates of participation, or other security evidencing the

pro rata interest of the holders thereof in the mortgage or indenture

being foreclosed; and, without such production, there shall be deemed

credited thereon the pro rata share of the net proceeds of sale

ascertained and established as aforesaid.