2010 New York Code
RPA - Real Property Actions & Proceedings
Article 13 - (1301 - 1391) ACTION TO FORECLOSE A MORTGAGE
1325 - Receiver.

§  1325.  Receiver.  1.  Where  the action is for the foreclosure of a
  mortgage providing that a receiver  may  be  appointed  without  notice,
  notice of a motion for such appointment shall not be required.
    2.  Where  a  receiver has been appointed, upon the application of the
  plaintiff or of any holder of  a  certificate  evidencing  an  undivided
  interest  in the mortgage or mortgage debt and upon proof that no answer
  has been interposed affecting the validity of the mortgage or the amount
  due thereon, or asserting any prior lien, or asserting a plea of  tender
  of  payment of the amount due, or which if sustained would affect in any
  way the right of the plaintiff to a judgment in foreclosure and  to  the
  payment  of  the  amount claimed by the plaintiff in his complaint to be
  due, the court may direct that the receiver of the  rents  appointed  in
  such action apply, during the pendency of the action, the rents received
  by him towards the payment of accrued interest on the mortgage, provided
  due   provision   shall  have  been  made  for  the  payment  of  taxes,
  administration expenses, fees and charges and such reserve as the  court
  may  direct.  Any  monies so paid over by the receiver shall be deducted
  from the amount of the judgment in said action.
    2-a. Where a receiver has been appointed,  the  order  of  appointment
  shall  direct the owner or lessee of the mortgaged premises to turn over
  to the receiver all security deposits received by such owner  or  lessee
  and  shall  further  direct the receiver to hold the security subject to
  such disposition thereof as shall be provided in a further order of  the
  court  to  be  made and entered in the foreclosure action, in accordance
  with the provisions of section 7-105 of the general obligations law.
    3. In a city with a population of one million or more persons an order
  appointing a receiver to receive the rents and  profits  of  a  multiple
  dwelling shall provide that the receiver:
    (a)  register  with any municipal department as provided by applicable
  law; and
    (b) expend rents and income and profits as  described  in  subdivision
  two  of  this  section,  except  that  a  priority shall be given to the
  correction of immediately hazardous and hazardous violations of  housing
  maintenance  laws  within  the  time  set  by  orders  of  any municipal
  department, or, if not practicable, seek a postponement of the time  for
  compliance.

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