2006 New York Code - Supervision.

 
    §  410-k.   Supervision.   1.   The commissioner may from time to time
  make, alter, amend and repeal rules and regulations for the supervision,
  examination, regulation and  audit  of  an  eligible  borrower  and  for
  carrying into effect this title, and each eligible borrower shall submit
  an  annual  report  of its operations to the commissioner and the agency
  who may examine and audit the books and records of the eligible borrower
  at any time.
    2.  The commissioner and the department shall have power  to  act  for
  and  in  behalf of the agency in servicing the project mortgage loans of
  the agency, and to perform such functions  and  services  in  connection
  with  the  making,  servicing  and  collection of such loans as shall be
  requested by the agency.
    3.  (a)  The commissioner and the department may, with respect to  any
  project  of  which  the  agency has acquired the fee or otherwise, enter
  into an agreement with said  agency  subject  to  the  approval  of  the
  director of the budget, for the department, as provided in paragraph (b)
  hereof,  to  operate  the  said  project in a manner consistent with the
  purposes of this title.  In such event, the commissioner, on  behalf  of
  the  department,  shall have the power to use any available funds to pay
  all operating expenses and to comply with all the terms  and  provisions
  of  the mortgage, as though the mortgage had not been foreclosed, and to
  comply with the provisions of this title.
    (b)  Subject to the provisions of the agreement with said agency,  the
  commissioner  may contract with any person, firm or corporation which he
  deems qualified to operate and manage such project and to  perform  such
  duties and functions as he may deem necessary.
    4.  Whenever the commissioner shall be of the opinion that an eligible
  borrower  is  failing  or  omitting,  or  is about to fail or omit to do
  anything required of it by law or by order of the  commissioner  and  is
  doing or is about to do anything, or permitting anything, or is about to
  permit anything to be done, contrary to or in violation of law or of any
  order of the commissioner, or which is improvident or prejudicial to the
  interest  of  the  public,  the  lienholders,  the  shareholders, or the
  occupants, the commissioner may, in addition to such other  remedies  as
  may  be available, commence an action or proceeding in the supreme court
  of the state of New York in  the  name  of  the  commissioner,  for  the
  purpose  of  having such violations or threatened violations stopped and
  prevented, and in such action or proceeding, the  court  may  appoint  a
  temporary  or  permanent  receiver  or both.   Such action or proceeding
  shall be commenced by a petition to  the  supreme  court,  alleging  the
  violation  complained  of  and praying for appropriate relief.  It shall
  thereupon be the duty of the court to specify the  time,  not  exceeding
  twenty  days  after  service of a copy of the petition, within which the
  eligible borrowers complained of must answer the petition.   In case  of
  any default or after answer the court shall immediately inquire into the
  facts  and circumstances in such manner as the court shall direct in the
  interest of substantial justice without other or formal pleading.   Such
  other persons or corporations as it shall seem to the court necessary or
  proper  to  join  as  parties  in  order  to  make its order or judgment
  effective, may be joined as parties.   The final judgment  in  any  such
  action  or  proceeding  shall either dismiss the action or proceeding or
  direct that an order or an injunction, or both, issue,  or  provide  for
  the  appointment  of  a receiver as prayed for in the petition, or grant
  such other relief as the court may deem appropriate.