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This entry was published on 2014-09-22
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Removal of violations by mortgagees
Multiple Dwelling (MDW) CHAPTER 61-A, ARTICLE 8
§ 302-b. Removal of violations by mortgagees. 1. Notwithstanding any
other provision of law, where a receiver has been appointed in
foreclosure proceedings instituted by a mortgagee with respect to any
multiple dwelling, such mortgagee may advance to such receiver funds
necessary for the operation of such multiple dwelling and for the making
of repairs therein necessary to remove conditions constituting
violations of this chapter. Such receiver shall, to the extent possible,
repay any and all such advances from income received by him with respect
to the property and, if such income is insufficient to permit complete
repayment of such advances, any amounts which cannot be so repaid, with
interest, shall be added to the amount of the lien of such mortgagee
upon entry of a foreclosure judgment, provided, however, that such
amounts shall not be the basis for any additional personal liability on
the part of the mortgagor.

2. Notwithstanding any other provisions of law, a mortgagee advancing
funds to a receiver pursuant to subdivision one of this section shall be
liable only for gross and willful negligence with respect to any repair
made at his direction and with funds so advanced.