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This entry was published on 2014-09-22
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SECTION 2879
Foreclosures and judgments
Public Health (PBH) CHAPTER 45, ARTICLE 28-B
§ 2879. Foreclosures and judgments. 1. In any foreclosure action the
commissioner shall be made a party defendant. He shall take all steps
necessary to protect the interests of the public therein and no costs
shall be awarded against him. Foreclosures shall not be decreed unless
the court to which application is made shall be satisfied that the
interests of the lienholder or holders cannot be adequately assured
except by the sale of the property. In any such proceeding, the court
shall be authorized to appoint the commissioner as receiver of the
property, or to grant such other and further relief as may be reasonable
and proper.

2. Notwithstanding the foregoing provisions of this section, wherever
it shall appear that the agency shall have loaned on a mortgage which is
a lien upon any such property, such agency shall have all the remedies
available to a mortgagee under the laws of the state of New York, free
from any restrictions contained in this section, except that the
commissioner shall be made a party defendant and that the commissioner
shall take all steps necessary to protect the interests of the public
and no costs shall be awarded against him.

3. In the event of a judgment against an eligible borrower in any
action not pertaining to the collection of a mortgage indebtedness,
there shall be no sale of any of the real property of such eligible
borrower except upon sixty days' written notice to the commissioner and
the agency. Upon receipt of such notice the commissioner and the agency
shall take such steps as in its judgment may be necessary to protect the
rights of all parties.