N.Y. Urban development guarantee fund of New York 175/68 § 13: Contracts of guarantee; waivers

§ 13. Contracts of guarantee; waivers. (a) The fund shall arrange by

contract with the lending institution or the borrower or both to

safeguard the interest of the fund in the event of default by the

borrower, including, at the discretion of the fund, provision for notice

to the fund of default by the borrower, for foreclosure or other

realization upon any security for the loan, for the time and conditions

for payment to the lending institution by the fund of the amount of any

loss to the lending institution guaranteed by the fund, and for the

disposition of the proceeds realized from any security for the loan

guaranteed. When it appears desirable for a temporary period upon

default or threatened default by the borrower, the fund may itself make

payments of installments of principal or interest or both, to the

lending institution, and of taxes and insurance, which payments shall be

repaid, under such conditions as the fund may prescribe, and the fund

may also agree to revised terms of financing when such appear prudent.

(b) Upon request of the lending institution, the fund may at any time,

under such equitable terms and conditions as it may prescribe, consent

to the release of the borrower from his liability under the loan or

consent to the release of parts of any secured property from the lien of

the lending institution.