2006 New York Code - Effects Of Breach Or Of Acquisition Of Projects By Third Persons.

 
    §  18.  Effects  of  breach  or  of  acquisition  of projects by third
  persons.  In every contract for a loan by  the  state  or  for  periodic
  subsidies  by  the state, or both, a substantial breach of the condition
  set forth therein providing for the maintenance of the  project  as  low
  rent  housing  shall  be defined in such terms as the commissioner shall
  deem to be in the public interest and consistent with the provisions and
  purposes of this chapter. In every such contract the commissioner  shall
  retain  the  right,  in the event of such a substantial breach or in the
  event of the acquisition of title to the project by a third party, other
  than a government authorized to engage in the administration of low rent
  housing and approved by the commissioner, in any manner including a bona
  fide foreclosure under a mortgage or other lien held by a  third  party,
  to increase the interest payable thereafter on the unpaid balance of any
  loan  made pursuant to the contract to a rate not in excess of the going
  state rate of interest (at the time of such breach or acquisition)  plus
  two  per  centum  per  annum  or  to declare any such unpaid balance due
  forthwith and to reduce or  terminate  any  periodic  subsidies  payable
  under the contract.