2006 New York Code - Right Of Election Of Mortgagee In Certain Cases.

 
    § 254-a. Right of election of mortgagee in certain cases. If a bond or
  note,  or the mortgage on real property, improved by a one to six family
  residence occupied by the owner, securing the payment of same,  contains
  (1)  a  provision  whereby the mortgagee retains the right to accelerate
  the due date for payment of the balance of principal upon a transfer  or
  sale  of  such  real  property  or  by  alienation of title of such real
  property due to an act or operation of law,  and  (2)  a  provision  for
  payment  of  any  charge,  however  denominated,  in  the  nature  of  a
  prepayment fee and if a mortgagor sells or transfers his property or  if
  title  to  the  mortgaged property is transferred by act or operation of
  law and the purchaser requests permission to assume the mortgage or take
  the mortgaged premises subject to the mortgage, but the  mortgagee  does
  not  consent  to such request and thereby necessitates prepayment of the
  mortgage, the mortgagee shall  not  levy  a  prepayment  fee;  provided,
  however,  that  the  provisions  of  this section shall not apply to the
  extent  such  provisions  are  inconsistent  with  any  federal  law  or
  regulation.