N.Y. Real Property Law § 127: Restrictions on trustees

§ 127. Restrictions on trustees. 1. No trustee shall accept a trust or

act as trustee under a trust mortgage affecting any property in which he

or any of the officers or directors of the trustee shall have, directly

or indirectly, any financial interest.

2. No trustee nor any officer or director of a trustee, nor any

employee of any company which is a subsidiary of, controlled by or

affiliated with the trustee shall, either directly or indirectly, act as

insurance broker or agent in connection with the placing or writing of

any insurance of any kind on any property affected or covered by a

mortgage held by such trustee under a trust indenture, deed of trust, or

other similar instrument, nor shall such trustee be an officer,

director, partner or employee of or otherwise connected with or have any

financial interest in, directly or indirectly, in any firm, agency,

business, association or corporation that shall act as broker or agent

in connection with the placing or writing of such insurance; nor shall

any trustee or any officer, director or employee of the trustee be an

officer, director, partner or an employee of or have any financial

interest in any firm, agency, association or corporation engaged by such

trustee as his or its representative or agent in the management or

supervision of, or the collection of rents and income from any property

affected or covered by the mortgage held by the trustee under a trust

indenture, deed of trust, or other similar instrument.

3. No trustee shall accept any trust or act as trustee under any other

trust indenture covering or affecting the same property.

4. No owner or mortgagor of any property covered by a trust indenture,

deed of trust, or other similar instrument and no officer, director,

stockholder or employee of such owner or mortgagor shall accept a trust

or act as trustee with respect to such property.

5. The provisions of this section shall only apply to trust indentures

or mortgages hereafter entered into.