2012 New York Consolidated Laws
PVH - Private Housing Finance
Article 4 - (70 - 97) LIMITED DIVIDEND HOUSING COMPANIES
91 - Proceedings against housing companies.

 
    §  91.  Proceedings  against  housing  companies.    1.  Whenever  the
  commissioner shall be of the opinion that a housing company  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 or is doing or  is  about  to  do
  anything,  or  permitting anything, or is about to permit anything to be
  done, contrary to and 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,  partners,  beneficiaries
  or  the tenants, the commissioner shall commence an action or proceeding
  in the supreme court of the state  of  New  York  in  the  name  of  the
  commissioner,  in  accordance  with the provisions of the civil practice
  law and rules 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  housing  company  complained of must answer the petition. In
  case of default in answer or after answer the  court  shall  immediately
  inquire  into  the  facts  and circumstances in such manner as the court
  shall direct without other or formal pleadings, and without  respect  to
  any  technical  requirements.  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.
    2.  In  the  event  that a municipality shall make a loan to a housing
  company, the municipality, as well as the commissioner, shall  have  the
  powers enumerated in subdivision one of this section.