2006 New York Code - Foreclosures And Judgments.

 
    §  2866.  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 New York state housing finance  agency  or  the
  New  York state medical care facilities finance agency shall have loaned
  on a mortgage which is a lien upon any  such  property,  such  New  York
  state  housing  finance agency or New York state medical care facilities
  finance agency, as  the  case  may  be,  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 a company 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 company except upon sixty
  days' written notice to the commissioner and the New York state  housing
  finance  agency  or  the  New York state medical care facilities finance
  agency, as the case may be. 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.