2010 New York Code
RPP - Real Property
Article 4-A - (124 - 130-K) TRUST INDENTURES AND INTERESTS THEREIN
126 - Trust indentures.

§  126.  Trust  indentures.  No trustee shall hereafter accept a trust
  under any trust indenture or mortgage within the contemplation  of  this
  article  or act as trustee thereunder unless the instrument creating the
  trust shall contain the following provisions, among others, which confer
  the following powers and impose the following duties upon the trustees:
    1. In the case of an event of default (as such term is defined in such
  instrument), to exercise such of the rights and  powers  vested  in  the
  trustee by such instrument, and to use the same degree of care and skill
  in  their  exercise  as  a  prudent  man would exercise or use under the
  circumstances in the conduct of his own affairs.
    2. In  considering  what  actions  are  or  are  not  prudent  in  the
  circumstances, to consider whether or not:
    (a) to take such action as may be necessary or proper to sequester the
  rents and income of the property;
    (b)  to  procure from the owner of the property an assignment of rents
  and/or a consent to enter into possession of the property and to collect
  the rents therefrom;
    (c) to apply to the court for the appointment of  a  receiver  of  the
  rents and income of the property;
    (d)  to  declare  due  and  payable  forthwith  any  principal  amount
  remaining due and unpaid and commence an action of foreclosure;
    (e) to apply the moneys received as rents and income from the property
  as well as moneys received by the trustee from  any  receiver  appointed
  for such property in his discretion, to the maintenance and operation of
  such  property, the payment of taxes, water rents and assessments levied
  thereon and any arrears thereof, to the payment of underlying liens, and
  to the creation and maintenance of a reserve or sinking fund.
    3. If the trustee can  obtain  the  information  without  unreasonable
  effort  or  expense,  to  render  annually  to  bondholders,  after  the
  occurrence of a default, unless such  default  be  previously  cured,  a
  summarized  statement  of income and expenditures in connection with the
  property.
    4. To distribute the proceeds of any sale or other disposition of  the
  property  ratably among the bondholders, subject to applicable mandatory
  provisions of law.
    5. To permit the obligor or other person in possession or  control  of
  the  property,  or  his successors in interest, to be free to select the
  insurance broker or agent through whom any insurance of any kind  is  to
  be  placed  or written on any property affected or covered by a mortgage
  held by such trustee.