§ 1325. Receiver. 1. Where the action is for the foreclosure of a
mortgage providing that a receiver may be appointed without notice,
notice of a motion for such appointment shall not be required.

2. Where a receiver has been appointed, upon the application of the
plaintiff or of any holder of a certificate evidencing an undivided
interest in the mortgage or mortgage debt and upon proof that no answer
has been interposed affecting the validity of the mortgage or the amount
due thereon, or asserting any prior lien, or asserting a plea of tender
of payment of the amount due, or which if sustained would affect in any
way the right of the plaintiff to a judgment in foreclosure and to the
payment of the amount claimed by the plaintiff in his complaint to be
due, the court may direct that the receiver of the rents appointed in
such action apply, during the pendency of the action, the rents received
by him towards the payment of accrued interest on the mortgage, provided
due provision shall have been made for the payment of taxes,
administration expenses, fees and charges and such reserve as the court
may direct. Any monies so paid over by the receiver shall be deducted
from the amount of the judgment in said action.

2-a. Where a receiver has been appointed, the order of appointment
shall direct the owner or lessee of the mortgaged premises to turn over
to the receiver all security deposits received by such owner or lessee
and shall further direct the receiver to hold the security subject to
such disposition thereof as shall be provided in a further order of the
court to be made and entered in the foreclosure action, in accordance
with the provisions of section 7-105 of the general obligations law.

3. In a city with a population of one million or more persons an order
appointing a receiver to receive the rents and profits of a multiple
dwelling shall provide that the receiver:

(a) register with any municipal department as provided by applicable
law; and

(b) expend rents and income and profits as described in subdivision
two of this section, except that a priority shall be given to the
correction of immediately hazardous and hazardous violations of housing
maintenance laws within the time set by orders of any municipal
department, or, if not practicable, seek a postponement of the time for
compliance.