2006 New York Code - Application By Mortgagee Or Lienor Of Record Or Other Person Having An Interest In The Property.

 
    §  777.  Application  by mortgagee or lienor of record or other person
  having an interest in the property. a. If,  after  a  trial,  the  court
  shall  determine  that  the  facts  alleged  in  the  petition have been
  affirmatively established by the petitioners, that  no  defense  thereto
  specified  in  section seven hundred seventy-five has been affirmatively
  established by the owner or a mortgagee or lienor of  record,  and  that
  the  facts  alleged  in  the petition warrant the granting of the relief
  sought, and if the owner or any mortgagee or lienor of record  or  other
  person  having  an interest in the property, shall apply to the court to
  be permitted to remove  or  remedy  the  conditions  specified  in  such
  petition and shall (1) demonstrate the ability promptly to undertake the
  work  required; and (2) post security for the performance thereof within
  the time, and in the amount and manner, deemed necessary by  the  court,
  then  the  court,  in  lieu of rendering judgment as provided in section
  seven hundred seventy-six of this article, may issue an order permitting
  such person to perform the work within a time fixed by the court.
    b. If, after the issuance of an order pursuant  to  subdivision  a  of
  this section, but before the time fixed in such order for the completion
  of  the work prescribed therein, it shall appear to the petitioners that
  the person  permitted  to  do  the  same  is  not  proceeding  with  due
  diligence,  the  petitions  may  apply  to  the court on notice to those
  persons who have appeared in the proceeding for a hearing  to  determine
  whether   judgment   should  be  rendered  immediately  as  provided  in
  subdivision c of this section.
    c. If, upon a hearing authorized in subdivision b  hereof,  the  court
  shall  determine  that  such owner, mortgagee, lienor or other person is
  not proceeding with due diligence, or upon the failure  of  such  owner,
  mortgagee,  lienor  or  other  person to complete the work in accordance
  with the provisions of said  order,  the  court  shall  render  a  final
  judgment  appointing  an  administrator  as  authorized in section seven
  hundred seventy-eight of this article. Such judgment  shall  direct  the
  administrator  to  apply  the  security  posted  by  such  person to the
  removing or remedying of the condition or conditions  specified  in  the
  petition.  In  the  event  that  the  amount  of such security should be
  insufficient for such purpose, such judgment shall direct the deposit of
  rents with the administrator, as authorized  by  section  seven  hundred
  seventy-six  of  this  article, to the extent of such deficiency. In the
  event that such security should exceed the amount required to remove  or
  remedy  such  condition  or  conditions,  such judgment shall direct the
  administrator to file with  the  court,  upon  completion  of  the  work
  prescribed therein, a full accounting of the amount of such security and
  the  expenditures  made pursuant to such judgment, and to turn over such
  surplus to the person who posted such security, together with a copy  of
  such accounting.