2012 New York Consolidated Laws
PVH - Private Housing Finance
Article 9 - (500 - 508) ACQUISITION OF PROPERTY
504 - Re-entry of lands sold or leased.

 
    §  504.  Re-entry  of lands sold or leased. 1. After the expiration of
  one year from the sale or lease of real property by the municipality  to
  a  housing company, the municipality shall have the right of re-entry in
  the manner hereinafter provided. Such right of re-entry may,  where  the
  property  has  been sold, be exercised at any time prior to twenty years
  after such sale, or where the property has  been  leased,  at  any  time
  prior  to  the termination of the lease.  The local legislative body may
  by resolution determine to re-enter the real  property  of  any  housing
  company which has purchased or leased property from the municipality.
    2. A certified copy of such resolution shall be filed in the office of
  the county clerk or register in which the deed or lease of such property
  is  recorded, and shall be served upon the housing company and also upon
  all obligees, mortgagees or holders of liens upon the real  property  or
  upon  any  interest  therein.  Upon  the  filing  of such resolution all
  indebtedness of the housing company shall  become  immediately  due  and
  payable.
    3.  The municipality shall, within ninety days after the filing of the
  resolution to re-enter, or as soon thereafter as may be feasible, pay to
  the company a sum which, together with the assets of such company, shall
  be sufficient to discharge all the indebtedness of the company, pay  the
  reasonable  expenses  of  liquidation  and dissolution and return to the
  holders of stock and debentures then outstanding, the par value  thereof
  plus  interest  at  the rate of six per centum per annum and any accrued
  and  unpaid  dividends  or  interest  on  such  outstanding  stock   and
  debentures.
    4.  Upon  the making of such payment the housing company shall deliver
  to the municipality proper instruments evidencing  the  cancellation  of
  the  indebtedness  and  the  surrender  of the rights of the company and
  thereupon the repossession by the municipality shall be complete.
    5. In the event of a foreclosure of a mortgage or other lien  held  by
  any  other  person,  bodies, institutions, associations, or corporations
  specified  in  section  eighty-one  the  right  of   re-entry   by   the
  municipality shall terminate upon the entry of a judgment of foreclosure
  and sale.