2006 New York Code - Conditions In Contracts For Municipal Aid.

 
    §  98.  Conditions  in contracts for municipal aid.  In every contract
  for  a  loan  by  a  municipality  or  for  periodic  subsidies   by   a
  municipality,  or both, a substantial breach of the conditions set forth
  therein providing for the maintenance of the project as low rent housing
  shall be defined in such terms as the municipality shall deem to  be  in
  the  public  interest and consistent with the provisions and purposes of
  this chapter. In any such contract the  municipality  shall  retain  the
  right,  in  the  event  of  such a substantial breach or in the event of
  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 municipality, 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 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.