S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 8993--A

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                              June 17, 2009
                               ___________

Introduced  by  M.  of  A.  WEINSTEIN  --  read once and referred to the
  Committee on Judiciary -- reported and referred to  the  Committee  on
  Codes  --  committee  discharged,  bill  amended, ordered reprinted as
  amended and recommitted to said committee

AN ACT to amend the real property actions and proceedings  law  and  the
  uniform  commercial  code,  in  relation to foreclosure of mortgage by
  power of sale; to repeal article 14 of the real property  actions  and
  proceedings  law  relating  thereto;  and  providing for the repeal of
  certain provisions upon expiration thereof

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Article 14 of the real property actions and proceedings law
is REPEALED and a new article 14 is added to read as follows:
                               ARTICLE 14
                FORECLOSURE OF MORTGAGE BY POWER OF SALE
SECTION 1401. WHEN MORTGAGE MAY BE FORECLOSED.
        1402. NOTICE OF INTENTION TO FORECLOSE.
        1403. NOTICE OF PENDENCY OF NON-JUDICIAL PROCEEDING FOR FORECLO-
                SURE BY POWER OF SALE.
        1404. CONTENTS OF NOTICE OF SALE.
        1405. NOTICE OF SALE; HOW GIVEN.
        1406. NOTICE OF SALE; HOW SERVED.
        1407. SALE; HOW POSTPONED.
        1408. SALE; HOW CONDUCTED.
        1409. MORTGAGEE OR SUCCESSOR IN INTEREST MAY PURCHASE.
        1410. RIGHT TO REDEEM OF MORTGAGOR, SUBORDINATE LIENOR, OR HOLD-
                ER OF SUBORDINATE INTERESTS.
        1411. EFFECT OF SALE.
        1412. CONVEYANCE.
        1413. DISTRIBUTION OF PROCEEDS OF SALE.
        1414. REPORT OF SALE.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14421-06-9
              

A. 8993--A                          2

        1415. FILING OF REPORT OF SALE.
        1416. MULTIPLE  COLLATERAL;  DESIGNATION  OF  ORDER  OF  SALE OF
                PARCELS.
        1417. COSTS AND EXPENSES ALLOWED.
        1418. APPLICATION FOR SURPLUS.
        1419. DEFICIENCY JUDGMENT.
        1420. RECEIVER.
        1421. RIGHT TO SEEK JUDICIAL INTERVENTION;  MORTGAGEE'S  LIABIL-
                ITY FOR FAILURE TO COMPLY WITH THIS ARTICLE.
        1422. DATA COLLECTION AND REPORT.
  S  1401.  WHEN  MORTGAGE  MAY BE FORECLOSED. 1. THE PROVISIONS OF THIS
ARTICLE SHALL APPLY ONLY TO A MORTGAGE OF FIVE MILLION DOLLARS  OR  MORE
SECURED  BY REAL PROPERTY SITUATED WITHIN THE STATE, EXCEPTING WHEN SUCH
MORTGAGE ON REAL PROPERTY:
  (A) IS IMPROVED BY A RESIDENTIAL BUILDING OR BUILDING CONTAINING  BOTH
RESIDENTIAL  AND COMMERCIAL UNITS CONTAINING ONE OR MORE DWELLING UNITS,
INCLUDING STRUCTURES AND IMPROVEMENTS APPURTENANT THERETO, OR
  (B) IS IMPROVED BY A RESIDENTIAL CONDOMINIUM  UNIT  IN  A  RESIDENTIAL
BUILDING OWNED IN A CONDOMINIUM FORM OF OWNERSHIP, OR
  (C)  IS  IMPROVED  BY A RESIDENTIAL BUILDING, INCLUDING STRUCTURES AND
IMPROVEMENTS APPURTENANT  THERETO,  OWNED  BY  A  QUALIFIED  COOPERATIVE
APARTMENT CORPORATION, OR
  (D)  CONTAINS INDIVIDUAL RESIDENTIAL COOPERATIVE DWELLINGS WITHIN SUCH
BUILDING, OR
  (E) HAS AN OWNER WHO IS DECEASED OR DIES DURING THE  PENDENCY  OF  THE
NON-JUDICIAL FORECLOSURE PROCEEDING.
  2.  IN  THE  EVENT  THAT SUCH MORTGAGE OTHERWISE QUALIFIES PURSUANT TO
SUBDIVISION ONE OF THIS SECTION, AND  THE  MORTGAGE  FOR  THE  BUILDING,
CONTAINS  A PROVISION THAT, UPON A DEFAULT OF THE MORTGAGE, OR THE NOTE,
BOND OR OTHER OBLIGATION SECURED THEREBY, THE MORTGAGEE SHALL  HAVE  THE
RIGHT TO SELL THE MORTGAGED PROPERTY, SUCH PROPERTY MAY BE FORECLOSED IN
THE  MANNER PRESCRIBED IN THIS ARTICLE FOR A NON-JUDICIAL PROCEEDING FOR
FORECLOSURE BY POWER OF SALE, WHERE THE FOLLOWING REQUISITES OCCUR:
  (A) DEFAULT HAS  OCCURRED  UNDER  THE  MORTGAGE  AND  THE  OUTSTANDING
INDEBTEDNESS  HAS  BEEN  DECLARED IMMEDIATELY DUE AND PAYABLE BY WRITTEN
NOTICE TO THE MORTGAGOR GIVEN IN THE MANNER REQUIRED BY THE MORTGAGE.
  (B) AN ACTION HAS NOT BEEN BROUGHT TO RECOVER THE DEBT SECURED BY  THE
MORTGAGE,  OR ANY PART THEREOF, OR TO FORECLOSE THE MORTGAGE UNDER ARTI-
CLE THIRTEEN OF THIS CHAPTER; OR, IF AN ACTION  ON  THE  DEBT  HAS  BEEN
BROUGHT, IT HAS BEEN DISCONTINUED OR DISMISSED WITHOUT PREJUDICE AGAINST
THE  PLAINTIFF, OR AN EXECUTION, ISSUED UPON A JUDGMENT RENDERED THEREIN
IN FAVOR OF THE PLAINTIFF, HAS BEEN RETURNED WHOLLY OR  PARTLY  UNSATIS-
FIED.
  (C)  THE  MORTGAGE  HAS  BEEN DULY RECORDED IN ACCORDANCE WITH ARTICLE
NINE OF THE REAL PROPERTY LAW IN THE LAND RECORDS IN  THE  COUNTY  WHERE
THE PROPERTY IS SITUATED.
  (D)  THE  FIRST  NOTICE  OF SALE HAS BEEN PUBLISHED WITHIN THE TIME IN
WHICH AN ACTION COULD BE COMMENCED TO FORECLOSE SUCH MORTGAGE.
  3. A MORTGAGE AGREEMENT THAT REQUIRES THAT A MORTGAGOR WAIVE OR OTHER-
WISE LIMIT IN ANY WAY THE RIGHT TO BE SUBJECT TO FORECLOSURE PURSUANT TO
ARTICLE THIRTEEN OF THIS CHAPTER SHALL BE NULL AND VOID.
  S 1402. NOTICE OF INTENTION TO FORECLOSE. 1. NOT LATER THAN  TEN  DAYS
AFTER  COMMENCING  THE  NON-JUDICIAL  PROCEEDING BY FILING THE NOTICE OF
PENDENCY PURSUANT TO SECTION FOURTEEN HUNDRED THREE OF THIS ARTICLE, AND
NOT LESS THAN TEN DAYS PRIOR TO THE FIRST SERVICE OF THE NOTICE OF  SALE
PURSUANT  TO SECTION FOURTEEN HUNDRED SIX OF THIS ARTICLE, A COPY OF THE

A. 8993--A                          3

NOTICE OF PENDENCY, TOGETHER WITH A NOTICE OF INTENTION TO FORECLOSE, IN
A WRITING COMPLYING WITH SUBDIVISION TWO OF THIS SECTION, SHALL BE  SENT
TO  THE MORTGAGOR, THE OBLIGOR ON THE NOTE, BOND, OR OTHER OBLIGATION IF
OTHER  THAN THE MORTGAGOR, THE OWNER OF THE MORTGAGED PROPERTY, IF OTHER
THAN THE MORTGAGOR, AND TO ANY PERSON OR ENTITY HAVING A LIEN OF  RECORD
UPON  THE  MORTGAGED  PROPERTY,  OR  INTEREST  IN THE MORTGAGED PROPERTY
SUBORDINATE TO THE MORTGAGE THAT THE MORTGAGEE SEEKS  TO  FORECLOSE,  AT
THE  TIME OF THE FILING OF THE NOTICE OF PENDENCY OF WHICH THE MORTGAGEE
HAS ACTUAL KNOWLEDGE OR IS ON CONSTRUCTIVE NOTICE, BOTH  BY  (A)  REGIS-
TERED  MAIL  OR  CERTIFIED MAIL AND (B) ORDINARY FIRST CLASS MAIL, OR BY
PERSONAL SERVICE IN THE SAME MANNER AS SERVICE OF A SUMMONS. SUCH NOTICE
SHALL BE SENT TO THE OWNER OF THE MORTGAGED PROPERTY AT THE  ADDRESS  OF
THE PROPERTY OR AT SUCH OTHER ADDRESS THAT IS KNOWN TO THE MORTGAGEE, TO
A  MORTGAGOR  AT THE MORTGAGOR'S ADDRESS SPECIFIED IN THE MORTGAGE OR TO
SUCH OTHER PLACE AS MAY HAVE BEEN DIRECTED BY THE MORTGAGOR  IN  WRITING
IN  ACCORDANCE  WITH  THE MORTGAGE, AND TO ANY PERSON OR ENTITY HAVING A
LIEN OF RECORD SUBORDINATE TO THE MORTGAGE THAT THE MORTGAGEE  SEEKS  TO
FORECLOSE AT THE ADDRESS SHOWN ON SUCH LIEN. THE NOTICE SHALL BE SENT TO
A  PERSON  OR  ENTITY  HAVING  ANY SUBORDINATE INTEREST IN THE MORTGAGED
PROPERTY THAT THE MORTGAGEE SEEKS TO FORECLOSE AND OF WHICH THE  MORTGA-
GEE HAS SUCH ACTUAL KNOWLEDGE OR CONSTRUCTIVE NOTICE AT SUCH PERSON'S OR
ENTITY'S LAST KNOWN PERSONAL OR BUSINESS ADDRESS.
  2. THE NOTICE SHALL:
  (A) IDENTIFY THE MORTGAGE BY THE PARTIES THERETO, THE DATE AND RECORD-
ING DATE THEREOF, AND ANY RECORDED AMENDMENTS AND MODIFICATIONS THEREOF;
  (B) (1) IF THERE IS A MONETARY DEFAULT, SET FORTH THE AMOUNTS DUE, THE
DATE DUE AND ANY LATE CHARGES AND DEFAULT INTEREST;
  (2) IF THERE IS A NON-MONETARY DEFAULT, SET FORTH THE BASIS THEREOF;
  (C)  STATE THAT THE MORTGAGEE HAS (1) MADE DEMAND TO CURE A DEFAULT IF
SUCH DEMAND IS REQUIRED UNDER THE MORTGAGE OR THE NOTE,  BOND  OR  OTHER
OBLIGATION  SECURED THEREBY, WHICH DEFAULT HAS NOT BEEN CURED WITHIN THE
APPLICABLE CURE PERIOD, AND (2) DECLARED THE ENTIRE  OBLIGATION  SECURED
BY  THE  MORTGAGE TO BE IMMEDIATELY DUE AND PAYABLE BY WRITTEN NOTICE TO
THE MORTGAGOR;
  (D) SET FORTH THE OUTSTANDING PRINCIPAL BALANCE DECLARED DUE AND PAYA-
BLE, TOGETHER WITH THE  AMOUNT  OF  INTEREST  ACCRUED  THEREON  AND  THE
APPROXIMATE AMOUNT OF OTHER SUMS SECURED BY THE MORTGAGE;
  (E) STATE THAT THE INTEREST IN THE MORTGAGED PROPERTY OF THE MORTGAGOR
AND ALL PERSONS OR ENTITIES HAVING AN INTEREST IN THE MORTGAGED PROPERTY
SUBORDINATE TO THE MORTGAGE, WHO ARE SERVED WITH A COPY OF THE NOTICE OF
INTENTION  TO  FORECLOSE AND ANY OTHER NOTICES REQUIRED UNDER THIS ARTI-
CLE, WILL BE TERMINATED BY FORECLOSURE OF THE MORTGAGE BY POWER OF  SALE
PURSUANT  TO  THIS  ARTICLE AND THAT THE MORTGAGOR, OWNER, OR SUCH OTHER
PERSON OR ENTITY HAVING AN INTEREST IN THE MORTGAGED  PROPERTY  SUBORDI-
NATE TO THE MORTGAGE, MAY THEREUPON BE EVICTED BY JUDICIAL PROCESS;
  (F)  SET  FORTH  THE  RIGHT  OF THE MORTGAGOR, OR ANY PERSON OR ENTITY
HAVING AN INTEREST IN THE MORTGAGED PROPERTY SUBORDINATE  TO  THE  MORT-
GAGE,  TO  ANY  SURPLUS MONEYS OUT OF THE PROCEEDS OF SALE IN ACCORDANCE
WITH THE PROVISIONS OF SECTION FOURTEEN HUNDRED EIGHTEEN OF  THIS  ARTI-
CLE;  AND,  IF  A  DEFICIENCY  JUDGMENT IS PERMITTED, THAT THE MORTGAGEE
SHALL HAVE THE RIGHT TO SEEK A DEFICIENCY JUDGMENT PURSUANT  TO  SECTION
FOURTEEN HUNDRED NINETEEN OF THIS ARTICLE;
  (G)  SET  FORTH THE RIGHTS AND REMEDIES, AS SPECIFIED IN SECTION FOUR-
TEEN HUNDRED TWENTY-ONE OF THIS ARTICLE,  WHICH  ARE  AVAILABLE  TO  THE
MORTGAGOR,  OR  ANY  PERSON  OR  ENTITY  CLAIMING UNDER THE MORTGAGOR OR

A. 8993--A                          4

HAVING AN INTEREST IN OR LIEN  UPON  THE  MORTGAGED  PROPERTY  WHICH  IS
SUBORDINATE TO THE MORTGAGE BEING FORECLOSED; AND
  (H)  WHERE THE UNITED STATES OF AMERICA, THE STATE OF NEW YORK, OR ANY
MUNICIPALITY, AGENCY OR INSTRUMENTALITY OF ANY OF THEM, IS  ENTITLED  TO
NOTICE,  THE  NOTICE  SHALL SPECIFY WITH PARTICULARITY THE NATURE OF THE
INTEREST OR LIEN OF THE GOVERNMENTAL ENTITY. THE NON-JUDICIAL PROCEEDING
UNDER THIS ARTICLE SHALL BE DEEMED TO BE  AN  ACTION,  FOR  PURPOSES  OF
STATUTES CONFERRING JURISDICTION OVER GOVERNMENTAL ENTITIES.
  3.  AFFIDAVITS OF SERVICE OR MAILING UPON EACH OF THE PERSONS OR ENTI-
TIES ENTITLED TO AND SERVED WITH THE NOTICE OF  INTENTION  TO  FORECLOSE
SHALL  BE  FILED PRIOR TO THE DATE OF SALE UNDER THE INDEX NUMBER OF THE
NON-JUDICIAL PROCEEDING WITH THE CLERK OF THE COUNTY IN WHICH  THE  SALE
IS TO TAKE PLACE.
  S  1403. NOTICE OF PENDENCY OF NON-JUDICIAL PROCEEDING FOR FORECLOSURE
BY POWER OF SALE. 1. THE MORTGAGEE SHALL, PRIOR TO THE FIRST SERVICE  OF
THE  NOTICE  OF  INTENTION TO FORECLOSE, PURCHASE AN INDEX NUMBER IN THE
OFFICE OF THE COUNTY CLERK OF THE COUNTY IN WHICH THE SALE  IS  TO  TAKE
PLACE  AND FILE IN THE CLERK'S OFFICE OF EACH COUNTY WHERE THE MORTGAGED
PROPERTY IS SITUATED A  NOTICE  OF  THE  PENDENCY  OF  THE  NON-JUDICIAL
PROCEEDING  FOR FORECLOSURE BY POWER OF SALE WHICH SHALL, IN ADDITION TO
THE APPLICABLE REQUIREMENTS OF ARTICLE SIXTY-FIVE OF THE CIVIL  PRACTICE
LAW  AND  RULES,  SPECIFY THE DATE OF THE MORTGAGE, THE PARTIES THERETO,
THE TIME AND PLACE OF RECORDING, THE NAME OF THE  RECORD  OWNER  OF  THE
MORTGAGED  PROPERTY,  THE NAMES OF ANY SUBORDINATE LIENORS OR HOLDERS OF
SUBORDINATE INTERESTS ENTITLED TO NOTICE OF THE SALE, THE OBJECT OF  THE
PROCEEDING  FOR  FORECLOSURE  OF  THE  MORTGAGE  BY POWER OF SALE, AND A
DESCRIPTION OF THE MORTGAGED PROPERTY,  INCLUDING  THE  NUMBER  OF  EACH
BLOCK  AND  LOT  ON  THE LAND MAP OF THE COUNTY WHICH IS AFFECTED BY THE
NOTICE. IF THE NOTICE IS FILED IN MORE THAN ONE COUNTY, THE NOTICE SHALL
DESIGNATE THE COUNTY IN WHICH THE SALE IS TO TAKE PLACE. THE  PROVISIONS
OF  ARTICLE SIXTY-FIVE OF THE CIVIL PRACTICE LAW AND RULES REQUIRING THE
SERVICE AND FILING OF A SUMMONS SHALL NOT BE APPLICABLE TO  A  NON-JUDI-
CIAL  PROCEEDING FOR FORECLOSURE BY POWER OF SALE PURSUANT TO THIS ARTI-
CLE.
  2. THE FILING OF THE NOTICE OF PENDENCY SHALL  BE  DEEMED  TO  BE  THE
COMMENCEMENT  OF THE NON-JUDICIAL PROCEEDING FOR FORECLOSURE BY POWER OF
SALE PURSUANT TO THIS ARTICLE.
  3. THE NOTICE OF PENDENCY SHALL BE EFFECTIVE FOR  A  PERIOD  OF  THREE
YEARS FROM THE DATE OF FILING. BEFORE EXPIRATION OF A PERIOD OR EXTENDED
PERIOD,  THE COURT, UPON MOTION OF THE MORTGAGEE AND UPON SUCH NOTICE AS
THE COURT MAY REQUIRE, MAY, FOR GOOD CAUSE SHOWN, GRANT AN EXTENSION FOR
AN ADDITIONAL THREE YEAR PERIOD. AN EXTENSION ORDER SHALL BE  FILED  AND
INDEXED  BEFORE  EXPIRATION  OF THE NOTICE OF PENDENCY. IN THE EVENT THE
SALE HAS NOT TAKEN PLACE PRIOR TO THE EXPIRATION OF A  PENDENCY  PERIOD,
AND  A  LAPSE  IN  EXTENDING  THE NOTICE OF PENDENCY HAS OCCURRED, A NEW
NOTICE OF PENDENCY MAY BE FILED UPON A  COURT  ORDER  FROM  THE  SUPREME
COURT  IN  THE  COUNTY  IN WHICH THE SALE IS TO TAKE PLACE, ON A SHOWING
THAT NO PERSON OR ENTITY HAS BEEN PREJUDICED BY THE  FAILURE  TO  EXTEND
THE  NOTICE OF PENDENCY. IN THE EVENT THAT A PERSON OR ENTITY SHALL HAVE
ACQUIRED, AFTER THE EXPIRATION OF A NOTICE OF PENDENCY AND BEFORE ANOTH-
ER SHALL BE FILED, AN INTEREST IN OR LIEN UPON  THE  MORTGAGED  PROPERTY
WHICH  IS  SUBORDINATE  TO  THE MORTGAGE, SUCH PERSON OR ENTITY SHALL BE
ENTITLED TO NOTICE OF THE SALE.
  4. THE FILING OF THE NOTICE OF PENDENCY SHALL BE DEEMED TO BE  CONCLU-
SIVE RECORD NOTICE TO ANY TENANT OR OCCUPANT WHO TAKES POSSESSION OF ALL
OR  A  PART OF THE MORTGAGED PROPERTY, OR ANY PERSON WHO OR ENTITY WHICH

A. 8993--A                          5

ACQUIRES AN INTEREST IN OR LIEN UPON THE MORTGAGED PROPERTY, OR ANY PART
THEREOF, AFTER THE FILING OF THE NOTICE OF PENDENCY AND ALL SUCH PERSONS
OR ENTITIES SHALL BE BOUND THEREBY AND BY  THE  NON-JUDICIAL  PROCEEDING
PURSUANT TO THIS ARTICLE.
  5.  THE  PROVISIONS OF SECTION SIXTY-FIVE HUNDRED SIXTEEN OF THE CIVIL
PRACTICE LAW AND RULES SHALL NOT BE APPLICABLE TO ANY NOTICE OF PENDENCY
FILED PURSUANT TO THIS SECTION.
  S 1404. CONTENTS OF NOTICE OF SALE. THE NOTICE OF SALE SHALL SPECIFY:
  1. THE NAMES OF THE MORTGAGOR AND RECORD  OWNER,  IF  OTHER  THAN  THE
MORTGAGOR, THE MORTGAGEE, AND OF EACH ASSIGNEE OF THE MORTGAGEE.
  2.  THE DATE OF THE MORTGAGE, THE DATE WHEN AND THE PLACE WHERE IT WAS
RECORDED, AND THE BOOK AND PAGE OR INDEX IN WHICH IT IS RECORDED AND THE
DATES AND RECORDING INFORMATION PERTAINING TO  EACH  ASSIGNMENT  OF  THE
MORTGAGE.
  3.  THE  IDENTITY  OF HOLDERS, IF ANY, OF SUBORDINATE INTERESTS IN THE
MORTGAGED PROPERTY WHICH THE MORTGAGEE  SEEKS  TO  FORECLOSE  WHICH  ARE
RECORDED  OR OF WHICH THE MORTGAGEE HAS ACTUAL OR CONSTRUCTIVE NOTICE AT
THE TIME OF THE FILING OF THE NOTICE OF PENDENCY, AND THE NATURE OF SUCH
SUBORDINATE INTERESTS.
  4. THE OUTSTANDING PRINCIPAL SUM CLAIMED BY THE MORTGAGEE  TO  BE  DUE
UPON THE MORTGAGE, TOGETHER WITH ACCRUED INTEREST THEREON, LATE CHARGES,
OTHER  SUMS  DUE  UNDER THE MORTGAGE, AND SUMS ADVANCED BY THE MORTGAGEE
RECOVERABLE UNDER THE MORTGAGE INCLUDING THE COSTS OF SALE  AND  REASON-
ABLE  ATTORNEYS' FEES AND DISBURSEMENTS, AT THE TIME OF THE FIRST PUBLI-
CATION OF THE NOTICE.
  5. A LEGAL DESCRIPTION OF THE MORTGAGED PROPERTY, THE STREET  ADDRESS,
AND THE BLOCK AND LOT OR OTHER TAX OR TAX MAP IDENTIFICATION.
  6. IF THE MORTGAGED PROPERTY CONSISTS OF TWO OR MORE DISTINCT PARCELS,
UNLESS  THE  MORTGAGE  PROVIDES  THAT  THE  PARCELS SHALL BE SOLD AS ONE
PARCEL, THE NOTICE OF SALE SHALL SPECIFY THE ORDER IN WHICH THE  PARCELS
SHALL BE SOLD.
  7.  THAT  THE OWNER HAS THE RIGHT, UP TO AND INCLUDING THE TIME OF THE
SALE, TO REDEEM THE MORTGAGED PROPERTY UPON PAYMENT TO THE MORTGAGEE  OF
THE OUTSTANDING PRINCIPAL BALANCE SECURED BY THE MORTGAGE, TOGETHER WITH
INTEREST  ACCRUED  THEREON, AND ALL OTHER SUMS DUE THEREUNDER, INCLUDING
THE COSTS OF SALE AND REASONABLE ATTORNEYS' FEES AND DISBURSEMENTS.
  8. THE DATE, PLACE AND TIME OF SALE.
  S 1405. NOTICE OF SALE; HOW GIVEN. NOTICE THAT THE  MORTGAGE  WILL  BE
FORECLOSED  BY A SALE OF THE MORTGAGED PROPERTY, OR A PART THEREOF, AT A
TIME AND PLACE SPECIFIED IN THE NOTICE, SHALL BE GIVEN IN THE  FOLLOWING
MANNER:
  1.  A  COPY  OF  THE  NOTICE SHALL BE SERVED, AS PRESCRIBED IN SECTION
FOURTEEN HUNDRED SIX OF THIS ARTICLE, UPON:
  (A) THE MORTGAGOR;
  (B) THE OBLIGOR ON THE NOTE, BOND OR OTHER OBLIGATION, IF  OTHER  THAN
THE MORTGAGOR;
  (C) THE OWNER OF THE MORTGAGED PROPERTY, IF OTHER THAN THE MORTGAGOR;
  (D)  ANY  OTHER PERSON OR ENTITY IN THE MORTGAGE DESIGNATED TO RECEIVE
NOTICE;
  (E) A SUBSEQUENT LIENOR OF THE MORTGAGED PROPERTY THAT  THE  MORTGAGEE
SEEKS TO FORECLOSE WHOSE INTEREST WAS RECORDED OR DOCKETED IN THE PROPER
OFFICE  FOR  RECORDING  OR  FILING  IN THE COUNTY IN WHICH THE MORTGAGED
PROPERTY IS LOCATED AT THE TIME OF THE FILING OF THE NOTICE OF PENDENCY;
  (F) ANY PERSON HAVING A LIEN UPON OR INTEREST IN THE MORTGAGED PROPER-
TY, OR ANY PART THEREOF, AT THE TIME OF THE  FILING  OF  THE  NOTICE  OF
PENDENCY  THAT  IS  SUBORDINATE  TO  THE MORTGAGE AND THAT THE MORTGAGEE

A. 8993--A                          6

SEEKS TO FORECLOSE. AFFIDAVITS OF SERVICE OR MAILING UPON  EACH  OF  THE
PERSONS  OR ENTITIES ENTITLED TO NOTICE OF THE SALE SHALL BE FILED PRIOR
TO THE DATE OF SALE UNDER THE INDEX NUMBER OF THE NON-JUDICIAL  PROCEED-
ING WITH THE CLERK OF THE COUNTY IN WHICH THE SALE IS TO TAKE PLACE.
  2.  A  COPY  OF  THE NOTICE OF SALE MUST BE PUBLISHED AT LEAST ONCE IN
EACH WEEK DURING THE FIVE SUCCESSIVE  WEEKS  IMMEDIATELY  PRECEDING  THE
DATE  OF SALE, OR AT LEAST TWICE IN EACH WEEK DURING THE FOUR SUCCESSIVE
WEEKS IMMEDIATELY PRECEDING THE DATE OF SALE, IN A NEWSPAPER OF  GENERAL
CIRCULATION  DISTRIBUTED IN THE COUNTY IN WHICH THE PROPERTY TO BE SOLD,
OR ANY PART THEREOF, IS SITUATED, OR IF NO NEWSPAPER IS  DISTRIBUTED  IN
SUCH  COUNTY,  THEN  IN  A NEWSPAPER DISTRIBUTED IN AN ADJOINING COUNTY,
EXCEPT THAT WHERE SUCH PROPERTY IS LOCATED IN A COUNTY WHOLLY  CONTAINED
WITHIN  A  CITY WITH A POPULATION OF ONE MILLION OR MORE, SUCH NOTICE OF
SALE SHALL BE PUBLISHED IN THE SAME  MANNER  AS  A  NOTICE  OF  JUDICIAL
PROCEEDING  IN  A  NEWSPAPER DISTRIBUTED WITHIN SUCH COUNTY TO BE DESIG-
NATED BY THE CLERK OF SUCH COUNTY. ANY PERIOD OF SEVEN  SUCCESSIVE  DAYS
SHALL CONSTITUTE A WEEK UNDER THIS SECTION.
  3.  A COPY OF THE NOTICE OF SALE MUST BE FILED ON OR BEFORE THE DAY OF
FIRST PUBLICATION OF THE NOTICE OF SALE WITH THE CLERK  OF  EACH  COUNTY
WHEREIN THE MORTGAGED PROPERTY, OR ANY PART THEREOF, IS SITUATED.
  4.  THE  PUBLICATION  PROVISIONS  OF THIS SECTION SHALL BE FOLLOWED IN
LIEU OF THE PROVISIONS OF SECTION TWO HUNDRED THIRTY-ONE OF THIS CHAPTER
RESPECTING THE PUBLICATION OF A NOTICE OF SALE.
  S 1406. NOTICE OF SALE; HOW SERVED. SERVICE OF NOTICE OF THE  SALE  AS
PRESCRIBED  IN  SUBDIVISION ONE OF SECTION FOURTEEN HUNDRED FIVE OF THIS
ARTICLE SHALL BE MADE UPON A PERSON OR ENTITY DESCRIBED  IN  SUBDIVISION
ONE  OF SECTION FOURTEEN HUNDRED FIVE OF THIS ARTICLE THAT THE MORTGAGEE
SEEKS TO FORECLOSE AS FOLLOWS:
  1. AT LEAST THIRTY DAYS BEFORE THE DATE OF SALE, BY DELIVERING A  COPY
OF  THE  NOTICE,  IN THE MANNER PRESCRIBED BY ARTICLE THREE OF THE CIVIL
PRACTICE LAW AND RULES FOR PERSONAL SERVICE OF A COPY OF A SUMMONS IN  A
CIVIL ACTION IN A COURT OF RECORD, TO THE PERSON OR ENTITY TO BE SERVED,
AND  BY  MAILING  AN ADDITIONAL COPY THEREOF TO SUCH PERSON OR ENTITY BY
FIRST CLASS MAIL IN AN ENVELOPE BEARING THE LEGEND "PERSONAL AND  CONFI-
DENTIAL" AND NOT INDICATING ON THE OUTSIDE THEREOF, BY RETURN ADDRESS OR
OTHERWISE,  THAT  THE  COMMUNICATION  IS FROM AN ATTORNEY OR CONCERNS AN
ACTION OR PROCEEDING AGAINST THE PERSON OR ENTITY TO BE SERVED. IF  SUCH
PERSON  OR  ENTITY  IS A FOREIGN CORPORATION, OR IS NOT A RESIDENT OF OR
WITHIN THE STATE, THEN SERVICE THEREOF MAY  BE  MADE  UPON  IT  IN  LIKE
MANNER WITHOUT THE STATE, AT LEAST FORTY DAYS BEFORE THE DATE OF SALE.
  2.  SERVICE  OF  A  COPY OF THE NOTICE OF SALE UPON THE MORTGAGOR, THE
MORTGAGOR'S SUCCESSORS OR ASSIGNS, OR A SUBSEQUENT GRANTEE OF THE  PROP-
ERTY  FROM THE MORTGAGOR, IN THE MANNER PRESCRIBED IN THE MORTGAGE SHALL
BE GOOD, VALID AND EFFECTIVE SERVICE HEREUNDER.
  3. SERVICE OF A COPY OF THE NOTICE OF SALE UPON THE UNITED  STATES  OF
AMERICA,  ITS AGENCIES OR INSTRUMENTALITIES, SHALL BE IN ACCORDANCE WITH
APPLICABLE FEDERAL STATUTE.
  S 1407. SALE; HOW POSTPONED. 1. THE SALE MAY BE POSTPONED BY THE MORT-
GAGEE FOR A PERIOD OF TIME NOT TO EXCEED FIVE WEEKS. NOTICE OF POSTPONE-
MENT OF THE SALE SHALL BE PUBLISHED AT LEAST ONCE  NOT  LESS  THAN  FIVE
DAYS  PRIOR  TO  THE  NEW DATE OF THE SALE IN THE NEWSPAPER IN WHICH THE
ORIGINAL NOTICE WAS PUBLISHED, AND SHALL BE SERVED  IN  THE  MANNER  SET
FORTH  IN  SECTION FOURTEEN HUNDRED SIX OF THIS ARTICLE UPON EACH PERSON
UPON WHOM OR ENTITY UPON WHICH THE ORIGINAL NOTICE OF SALE WAS SERVED.
  2. THE SALE MAY ALSO BE POSTPONED IF THE PERSON DESIGNATED TO  CONDUCT
THE  SALE  DOES  NOT APPEAR ON THE DATE SCHEDULED FOR THE SALE, IN WHICH

A. 8993--A                          7

CASE NOTICE OF THE ADJOURNED DATE  SHALL  BE  PUBLISHED  AND  SERVED  AS
PROVIDED IN SUBDIVISION ONE OF THIS SECTION.
  3. IF THE SALE IS STAYED BY APPLICATION OF ANY OTHER LAW, THEN AT SUCH
TIME  AS  THE  STAY SHALL BE VACATED OR LIFTED, AN ADJOURNED SALE MAY BE
SCHEDULED BY THE MORTGAGEE AND PUBLICATION OF THE NOTICE OF  SALE  SHALL
BE  MADE  AS  PRESCRIBED  IN SUBDIVISION TWO OF SECTION FOURTEEN HUNDRED
FIVE OF THIS ARTICLE.
  4. THE SALE MAY BE POSTPONED BY THE  MORTGAGEE  MORE  THAN  ONCE.  THE
MANNER  OF  THE  POSTPONEMENT  AND THE PUBLICATION AND SERVICE OF NOTICE
THEREOF SHALL BE EFFECTED IN ACCORDANCE WITH THE PROVISIONS OF  SUBDIVI-
SION ONE OF THIS SECTION.
  S 1408. SALE; HOW CONDUCTED. 1. THE SALE SHALL BE AT PUBLIC AUCTION BY
A LICENSED AUCTIONEER, SHERIFF, MARSHAL, OR COURT APPOINTED OFFICIAL FOR
SUCH  PURPOSE,  DURING  REASONABLE  BUSINESS  HOURS, ON A DAY OTHER THAN
SATURDAY, SUNDAY OR A PUBLIC HOLIDAY, IN THE COUNTY IN WHICH  THE  MORT-
GAGED  PROPERTY,  OR  A  PART  THEREOF,  IS  SITUATED, AT ANY COURTHOUSE
LOCATED IN THE COUNTY, OR IF IN A COUNTY WITHIN THE CITY OF NEW YORK, AT
THE COURTHOUSE OF THE SUPREME COURT IN SUCH COUNTY.
  2. IF PUBLICATION OF THE NOTICE OF SALE IS FOR FOUR WEEKS,  SUCH  SALE
SHALL  TAKE  PLACE  ON ANY DAY ON OR AFTER THE FORTY-THIRD DAY AND ON OR
BEFORE THE FIFTIETH DAY AFTER THE DAY OF THE FIRST PUBLICATION;  AND  IF
PUBLICATION  OF  THE  NOTICE  OF SALE IS FOR FIVE WEEKS, SUCH SALE SHALL
TAKE PLACE ON ANY DAY ON OR AFTER THE FIFTIETH DAY AND ON OR BEFORE  THE
FIFTY-SEVENTH  DAY AFTER THE DAY OF THE FIRST PUBLICATION. ANY PERIOD OF
SEVEN SUCCESSIVE DAYS SHALL CONSTITUTE A WEEK UNDER THIS SECTION.
  3. THE PERSON CONDUCTING THE SALE SHALL ANNOUNCE THE TERMS THEREOF  AT
THE  OUTSET  OF  THE  AUCTION. A COPY OF THE TERMS OF SALE SHALL BE MADE
AVAILABLE BY THE MORTGAGEE OR PERSON CONDUCTING THE  SALE  AT  OR  PRIOR
THERETO.
  4.  ON  ACCEPTANCE  OF  A  BID AT THE SALE, THE BIDDER, OTHER THAN THE
MORTGAGEE, SHALL DEPOSIT WITH THE PERSON CONDUCTING THE  SALE  AT  LEAST
TEN  PERCENT  OF  THE BID PRICE IN CASH, CERTIFIED CHECK OR A BANK CHECK
DRAWN ON A BANK, TRUST COMPANY, SAVINGS BANK OR SAVINGS AND LOAN ASSOCI-
ATION HAVING OFFICES IN THIS STATE. A  MEMORANDUM  OF  THE  SALE,  WHICH
SHALL INCORPORATE THE TERMS OF THE SALE, SHALL BE EXECUTED BY THE PERSON
CONDUCTING  THE  SALE  AND  THE SUCCESSFUL BIDDER THEREAT, INCLUDING THE
FORECLOSING MORTGAGEE. THE MEMORANDUM SHALL STATE THE  IDENTITY  OF  THE
PURCHASER,  THE  AMOUNT OF THE SUCCESSFUL BID, THE AMOUNT OF THE DEPOSIT
(WHICH, PENDING THE CONVEYANCE OF TITLE, SHALL BE RETAINED BY THE PERSON
CONDUCTING THE SALE IN A  SEPARATE  ACCOUNT  IN  A  COMMERCIAL  BANK  OR
SAVINGS BANK LOCATED IN THE STATE OF NEW YORK), THE DATE, TIME AND PLACE
OF  CLOSING  OF  TITLE  AND  THAT THE TERMS OF THE SALE ARE INCORPORATED
THEREIN. THE MEMORANDUM OF SALE SHALL NOT BE AMENDED OR MODIFIED.
  5. IF THE SUCCESSFUL BIDDER FAILS TO MAKE THE DEPOSIT  ON  ACCEPTANCE,
OR  TO COMPLETE THE TRANSACTION WITHIN THIRTY DAYS AFTER ACCEPTANCE, THE
MORTGAGEE MAY RESELL THE MORTGAGED PROPERTY. THE BIDDER'S DEPOSIT MAY BE
RETAINED OR RECOVERED BY THE MORTGAGEE AS LIQUIDATED DAMAGES  REGARDLESS
OF THE AMOUNT BID AND PAID ON THE RESALE OF THE MORTGAGED PROPERTY.
  6. IF THE MORTGAGED PROPERTY CONSISTS OF TWO OR MORE DISTINCT PARCELS,
THEY  SHALL  BE  SOLD SEPARATELY IN THE ORDER SPECIFIED IN THE NOTICE OF
SALE UNLESS OTHERWISE PROVIDED IN THE MORTGAGE OR ANY INSTRUMENT EXTEND-
ING, AMENDING OR MODIFYING THE MORTGAGE. AS MANY OF THE PARCELS SHALL BE
SOLD AS IT IS NECESSARY TO SELL IN ORDER TO SATISFY THE  AMOUNT  DUE  AT
THE  TIME  OF  THE  SALE,  AND THE COSTS AND EXPENSES ALLOWED BY SECTION
FOURTEEN HUNDRED SEVENTEEN OF THIS ARTICLE. WHERE TWO OR MORE  BUILDINGS

A. 8993--A                          8

ARE  SITUATED  IN THE SAME CITY LOT OR LOCAL TAX LOT, THEY SHALL BE SOLD
TOGETHER.
  S  1409.  MORTGAGEE OR SUCCESSOR IN INTEREST MAY PURCHASE. THE MORTGA-
GEE, OR ITS  ASSIGNEE,  OR  THE  LEGAL  REPRESENTATIVE  OF  EITHER,  MAY
PURCHASE  THE  MORTGAGED  PROPERTY, OR ANY PART THEREOF, AT THE SALE AND
SHALL BE ENTITLED TO BID. UPON ANY SUCH BID UP TO THE FULL AMOUNT OF THE
INDEBTEDNESS SECURED BY THE MORTGAGE, INCLUDING  UNPAID  INTEREST,  LATE
CHARGES,  COSTS  OF  SALE, REASONABLE ATTORNEYS' FEES AND DISBURSEMENTS,
AND ADVANCES MADE TO PROTECT THE LIEN OF THE MORTGAGE, THE MORTGAGEE, OR
ITS ASSIGNEE, OR THE  LEGAL  REPRESENTATIVE  OF  EITHER,  SHALL  NOT  BE
REQUIRED TO MAKE ANY DEPOSIT AT THE SALE OR ANY PAYMENT OF THE AMOUNT OF
THE  SUCCESSFUL BID UP TO THE FULL AMOUNT OF THE INDEBTEDNESS SECURED BY
THE MORTGAGE, UPON THE DELIVERY OF THE POWER OF SALE DEED.
  S 1410. RIGHT TO REDEEM OF MORTGAGOR, SUBORDINATE LIENOR, OR HOLDER OF
SUBORDINATE INTERESTS. 1. AT ANY TIME BEFORE  THE  COMMENCEMENT  OF  THE
BIDDING AT THE SALE, THE MORTGAGOR, OR THE RECORD OWNER OF THE MORTGAGED
PROPERTY, OR THE HOLDER OF ANY SUBORDINATE SECURITY INTEREST IN OR OTHER
LIEN UPON THE MORTGAGED PROPERTY, MAY PREVENT THE SALE BY PAYMENT TO THE
MORTGAGEE,  IN  GOOD  FUNDS,  OF ALL SUMS DUE UNDER THE MORTGAGE, OR THE
NOTE, BOND OR OTHER OBLIGATION SECURED THEREBY,  TOGETHER  WITH  ACCRUED
INTEREST THEREON, AND ALL OTHER SUMS DUE THEREUNDER, INCLUDING THE COSTS
OF  SALE  AND REASONABLE ATTORNEYS' FEES. AS BETWEEN OR AMONG HOLDERS OF
SECURITY INTERESTS, THE TENDER OF REDEMPTION BY THE HOLDER  ENTITLED  TO
PRIORITY  PREVAILS  OVER  THE  TENDER  OF  REDEMPTION BY THE HOLDER OF A
SUBORDINATE INTEREST.
  2. IF A MORTGAGOR, RECORD OWNER, OR HOLDER OF ANY SUBORDINATE SECURITY
INTEREST IN OR OTHER LIEN UPON THE MORTGAGED  PROPERTY  IS  ENTITLED  TO
REDEEM UNDER THIS SECTION, THE MORTGAGOR, RECORD OWNER, OR THE HOLDER OF
ANY  SUBORDINATE  SECURITY  INTEREST OR LIEN, MAY, UPON SUCH REDEMPTION,
REQUIRE THE MORTGAGEE, UPON FULL PAYMENT OF THE OBLIGATION, IN  LIEU  OF
THE  CERTIFICATE  OF DISCHARGE UNDER SECTION TWO HUNDRED SEVENTY-FIVE OF
THE REAL PROPERTY LAW, TO ASSIGN  THE  DEBT  AND  THE  MORTGAGE  WITHOUT
RECOURSE  OR  WARRANTY  TO  ANY PERSON OR ENTITY DESIGNATED BY THE PAYOR
PROVIDED THAT SUCH PERSON OR ENTITY IS NOT THE MORTGAGOR OR A PERSON  OR
ENTITY  ACTING AS A NOMINEE OF THE MORTGAGOR, AND THE MORTGAGEE IS OBLI-
GATED TO DO SO, PROVIDED THE PAYOR EXECUTES THE AFFIDAVIT REQUIRED UNDER
SECTION TWO HUNDRED SEVENTY-FIVE OF THE REAL PROPERTY  LAW.  THE  RIGHTS
UNDER  THIS SUBDIVISION MAY BE ENFORCED BY THE HOLDER OF ANY SUBORDINATE
SECURITY INTEREST IN OR LIEN UPON THE MORTGAGED PROPERTY EVEN THOUGH  IT
IS  A SUBORDINATE SECURITY INTEREST OR LIEN. THE ASSIGNMENT OF THE MORT-
GAGE, AND THE INDEBTEDNESS SECURED THEREBY, SHALL BE  DEEMED  TO  BE  AN
ASSIGNMENT  OF  A BONA FIDE OBLIGATION WITHIN THE MEANING OF SECTION TWO
HUNDRED SEVENTY-FIVE OF THE REAL PROPERTY LAW.
  S 1411. EFFECT OF SALE. 1. A SALE, MADE AND CONDUCTED AS PRESCRIBED IN
THIS ARTICLE, TO A PURCHASER, INCLUDING THE MORTGAGEE OR THE  PERSON  TO
WHOM OR ENTITY TO WHICH THE PURCHASER OR THE MORTGAGEE ASSIGNS THE TERMS
OF SALE AND MEMORANDUM OF SALE BY ASSIGNMENT DULY EXECUTED AND RECORDED,
IS  EQUIVALENT  TO A SALE PURSUANT TO JUDGMENT IN AN ACTION TO FORECLOSE
THE MORTGAGE UNDER ARTICLE THIRTEEN  OF  THIS  CHAPTER,  AND  EXCEPT  AS
RESPECTS  THE  INTEREST  OF THE UNITED STATES OF AMERICA, WHICH SHALL BE
FORECLOSED AS PROVIDED IN SUBDIVISION FOUR OF THIS SECTION,  IMMEDIATELY
UPON  THE  EXECUTION  OF THE MEMORANDUM OF SALE OF THE PERSON CONDUCTING
THE AUCTION, SHALL BAR ANY CLAIM OR EQUITY OF REDEMPTION, UPON, OR  WITH
RESPECT TO, THE PROPERTY SOLD, OF EACH OF THE FOLLOWING PERSONS OR ENTI-
TIES:

A. 8993--A                          9

  (A)  THE  MORTGAGOR,  OR  THE  MORTGAGOR'S HEIRS, DEVISEES, EXECUTORS,
ADMINISTRATORS, SUCCESSORS OR ASSIGNS;
  (B)  EACH  PERSON  CLAIMING  UNDER  ANY OF THEM, BY VIRTUE OF A TITLE,
LIEN, TENANCY, INTEREST, ENCUMBRANCE, JUDGMENT OR DECREE, SUBSEQUENT  TO
THE  MORTGAGE, UPON WHOM THE NOTICE OF SALE WAS SERVED, AS PRESCRIBED IN
THIS ARTICLE;
  (C) EACH PERSON SO CLAIMING, WHOSE ASSIGNMENT,  MORTGAGE,  CONVEYANCE,
TENANCY,  OR  OTHER INTEREST WAS NOT DULY RECORDED IN THE PROPER BOOK OR
INDEX FOR RECORDING THE SAME IN THE COUNTY  IN  WHICH  THE  PROPERTY  IS
SITUATED, OR WHOSE JUDGMENT OR DECREE WAS NOT DULY DOCKETED IN THE COUN-
TY  CLERK'S  OFFICE, AT THE TIME OF THE FILING OF THE NOTICE OF PENDENCY
OF THE SALE PURSUANT TO THIS ARTICLE, AND THE  EXECUTOR,  ADMINISTRATOR,
SUCCESSOR OR ASSIGNEE OF SUCH A PERSON;
  (D)  EVERY  OTHER  PERSON,  CLAIMING  UNDER A STATUTORY LIEN OR ENCUM-
BRANCE, CREATED, RECORDED OR FILED  SUBSEQUENT  TO  THE  FILING  OF  THE
NOTICE  OF  PENDENCY,  ATTACHING TO THE TITLE OR INTEREST OF ANY PERSON,
DESIGNATED IN ANY OF THE FOREGOING SUBDIVISIONS OF THIS SECTION.
  2. NOTHING IN THIS ARTICLE SHALL BAR OR FORECLOSE ANY  CLAIM  UPON  OR
INTEREST  IN  THE  MORTGAGED PROPERTY SOLD OF ANY PERSON OR ENTITY WHOSE
INTEREST IN OR LIEN UPON THE  MORTGAGED  PROPERTY  AROSE  PRIOR  TO  THE
FILING OF THE NOTICE OF PENDENCY AND WHO HAS NOT BEEN SERVED WITH A COPY
OF THE NOTICE OF SALE IN THE MANNER PRESCRIBED IN THIS ARTICLE.
  3.  A  CONVEYANCE  MADE  IN  ACCORDANCE  WITH SECTION FOURTEEN HUNDRED
TWELVE OF THIS ARTICLE TO A PURCHASER AT THE FORECLOSURE SALE, INCLUDING
THE MORTGAGEE, IS NOT A FRAUDULENT TRANSFER BY REASON OF THE VALUE GIVEN
BEING LESS THAN THE VALUE OF THE MORTGAGOR'S INTEREST IN  THE  MORTGAGED
PROPERTY.
  4.  WHERE  THE  UNITED  STATES  OF  AMERICA, OR ANY OF ITS AGENCIES OR
INSTRUMENTALITIES, HAS A SUBORDINATE LIEN OR INTEREST OF RECORD  IN  THE
MORTGAGED PROPERTY AND IS ENTITLED TO NOTICE, THE MORTGAGEE SHALL OBTAIN
AN  ORDER  FROM  THE SUPREME COURT IN THE COUNTY IN WHICH THE SALE IS TO
TAKE PLACE, AFTER THE TIME FOR THE UNITED STATES OF  AMERICA  TO  APPEAR
HAS EXPIRED, FORECLOSING THE LIEN OR INTEREST OF THE UNITED STATES. UPON
SUCH  ORDER,  THE SALE SHALL BE DEEMED TO BE A JUDICIAL SALE FORECLOSING
THE LIEN OR INTEREST OF THE UNITED STATES  OF  AMERICA  SUBJECT  TO  THE
RIGHTS OF THE UNITED STATES OF AMERICA PURSUANT TO APPLICABLE STATUTES.
  5.  AT  ANY  TIME  WITHIN  ONE  YEAR  AFTER  THE RECORDING OF THE DEED
EXECUTED AND DELIVERED PURSUANT TO SECTION FOURTEEN  HUNDRED  TWELVE  OF
THIS  ARTICLE,  BUT  NOT  THEREAFTER, A COURT, UPON SUCH TERMS AS MAY BE
JUST, BUT NOT INCONSISTENT WITH OTHER PROVISIONS OF  THIS  ARTICLE,  MAY
SET ASIDE THE SALE FOR FAILURE SUBSTANTIALLY TO COMPLY WITH THE REQUIRE-
MENTS  HEREIN  SET  FORTH  AS TO NOTICE, TIME, MANNER AND PUBLICATION OF
SUCH SALE UPON A FINDING THAT THE FAILURE PREJUDICED A SUBSTANTIAL RIGHT
OF ANY PERSON OR ENTITY DESCRIBED IN SUBDIVISIONS ONE, TWO AND  FOUR  OF
THIS  SECTION.  IN  THE  EVENT  THE  SALE  HAS  BEEN MADE TO A BONA FIDE
PURCHASER OTHER THAN THE MORTGAGEE OR THE MORTGAGEE'S NOMINEE OR  ASSIG-
NEE  WITHOUT  NOTICE OF ANY IRREGULARITY OF THE SALE, THE SALE SHALL NOT
BE SET ASIDE UNLESS THERE SHALL BE A RESTITUTION TO  SUCH  PURCHASER  OF
THE PURCHASE PRICE PAID.
  S  1412.  CONVEYANCE.  1.  THE  PERSON  AUTHORIZED TO CONDUCT THE SALE
PURSUANT TO SUBDIVISION ONE OF SECTION FOURTEEN HUNDRED  EIGHT  OF  THIS
ARTICLE SHALL, AT THE CLOSING OF TITLE HELD IN ACCORDANCE WITH THE TERMS
OF  SALE,  EXECUTE  AND DELIVER A DEED TO THE PURCHASER IN THE FOLLOWING
FORM:
                           POWER OF SALE DEED

A. 8993--A                         10

THIS DEED, MADE AS OF THE _______ DAY  OF  ___________,  _____,  BETWEEN
______________,  IN  THE CAPACITY OF AUCTIONEER/SHERIFF/MARSHAL/REFEREE,
HAVING AN OFFICE AT _________, ______________, NEW YORK ("GRANTOR")  AND
______________,     A     ____________     HAVING    AN    ADDRESS    AT
____________________, ______________, _____________ ("GRANTEE"),

                               WITNESSETH:
THAT  __________________("MORTGAGEE"), THE OWNER AND HOLDER OF THE MORT-
GAGE DESCRIBED IN EXHIBIT A ATTACHED  HERETO  ENCUMBERING  THE  PROPERTY
DESCRIBED  HEREINBELOW  (THE  "PROPERTY"),  AND  THE NOTE, BOND OR OTHER
OBLIGATION SECURED THEREBY, HAS FORECLOSED THE  LIEN  OF  SAID  MORTGAGE
PURSUANT   TO   ARTICLE  FOURTEEN  OF  THE  REAL  PROPERTY  ACTIONS  AND
PROCEEDINGS LAW OF THE STATE OF NEW YORK;
THAT GRANTOR HAS BEEN DESIGNATED BY MORTGAGEE OR BY  THE  COURT  IN  THE
COUNTY  IN  WHICH  THE  SALE  HAS TAKEN PLACE TO CONDUCT THE SALE OF THE
PROPERTY;
THAT THE SALE WAS DULY HELD ON _______________ ___, ____, AND THE  MEMO-
RANDUM  OF SALE ATTACHED HERETO AS EXHIBIT B WAS EXECUTED AT THE CONCLU-
SION OF THE SALE;
AND THAT PURSUANT THERETO AND  IN  CONSIDERATION  OF  ___________DOLLARS
($_____________) PAID BY GRANTEE, BEING THE HIGHEST SUM BID AT THE SALE,
GRANTOR DOES HEREBY GRANT AND CONVEY TO GRANTEE:
                   (LAND DESCRIPTION OF THE PROPERTY)
TOGETHER  WITH  ALL RIGHT, TITLE AND INTEREST, IF ANY, OF THE GRANTOR IN
AND TO ANY STREETS AND ROADS ABUTTING THE  ABOVE-DESCRIBED  PREMISES  TO
THE  CENTER  LINES  THEREOF; TOGETHER WITH THE APPURTENANCES AND ALL THE
ESTATE AND RIGHTS OF THE GRANTOR IN AND TO SAID PREMISES; TO HAVE AND TO
HOLD THE PREMISES HEREIN GRANTED TO THE GRANTEE, THE HEIRS OR SUCCESSORS
AND ASSIGNS OF THE GRANTEE FOREVER.
IN WITNESS WHEREOF, GRANTOR HAS HEREUNTO SET THE GRANTOR'S HAND AND SEAL
THE DATE FIRST ABOVE WRITTEN.
                                                ________________
(ACKNOWLEDGEMENT)
  2. BEFORE THE DEED IS EXECUTED AND DELIVERED  TO  THE  PURCHASER,  THE
MORTGAGEE  SHALL  FILE THE MORTGAGE AND ANY ASSIGNMENT NOT SHOWN TO HAVE
BEEN LOST OR DESTROYED IN THE OFFICE OF THE CLERK, UNLESS  IT  IS  IN  A
FORM  WHICH  CAN  BE RECORDED; IN WHICH CASE IT SHALL BE RECORDED IN THE
COUNTY OR COUNTIES WHERE THE MORTGAGED PROPERTY OR PROPERTIES ARE  SITU-
ATED;  THE  EXPENSE OF FILING OR RECORDING AND ENTRY SHALL BE ALLOWED IN
THE COSTS TO BE RECOVERED BY THE MORTGAGEE  PURSUANT  TO  THIS  ARTICLE;
AND,  IF FILED WITH THE CLERK, HE SHALL ENTER IN THE MINUTES THE TIME OF
FILING.
  3. THE PURCHASER OF THE MORTGAGED PROPERTY, UPON A SALE  CONDUCTED  AS
PRESCRIBED  IN THIS ARTICLE, THEREUPON OBTAINS MARKETABLE TITLE THERETO,
IN THE SAME MANNER AS A PURCHASER IN A JUDICIAL FORECLOSURE SALE  PURSU-
ANT TO ARTICLE THIRTEEN OF THIS CHAPTER AGAINST ALL PERSONS BOUND BY THE
SALE.
  S  1413. DISTRIBUTION OF PROCEEDS OF SALE. 1. THE PROCEEDS OF THE SALE
SHALL BE DISTRIBUTED AND PAID BY THE PERSON CONDUCTING THE SALE  IN  THE
FOLLOWING ORDER:
  (A) ALL TAXES, WATER RATES, SEWER RENTS AND ASSESSMENTS THAT ARE LIENS
UPON  THE  REAL PROPERTY SOLD, AND ANY LIENS OR ENCUMBRANCES PLACED BY A
CITY AGENCY OR A MUNICIPALITY UPON THE REAL PROPERTY THAT HAVE  PRIORITY
OVER THE FORECLOSED MORTGAGE.
  (B)  THE  COSTS AND EXPENSES OF THE SALE, PURSUANT TO SECTION FOURTEEN
HUNDRED SEVENTEEN OF THIS ARTICLE.

A. 8993--A                         11

  (C) TO THE MORTGAGEE, THE AMOUNT OF THE DEBT, ACCRUED INTEREST  THERE-
ON, LATE CHARGES, AND ALL OTHER SUMS ADVANCED BY THE MORTGAGEE WHICH ARE
RECOVERABLE  UNDER THE MORTGAGE, INCLUDING THE COSTS OF SALE AND REASON-
ABLE ATTORNEYS' FEES AND  DISBURSEMENTS,  OR  SO  MUCH  THEREOF  AS  THE
PROCEEDS WILL PAY. THE PERSON CONDUCTING THE SALE SHALL TAKE THE AFFIDA-
VIT  OF  THE MORTGAGEE AS TO ALL OF THE FOREGOING AMOUNTS BEING DUE, AND
THE RECEIPT OF THE MORTGAGEE FOR THE AMOUNT SO PAID, AND FILE  THE  SAME
WITH THE REPORT OF SALE.
  (D)  UPON ENTRY OF AN ORDER PURSUANT TO SECTION FOURTEEN HUNDRED EIGH-
TEEN OF THIS ARTICLE PROVIDING FOR SAME, TO THE HOLDER OF  ANY  SUBORDI-
NATE  MORTGAGE  OR  LIEN, OR TO THE OWNER OF THE EQUITY OF REDEMPTION OR
ANY PERSON OR ENTITY HAVING FILED A NOTICE OF CLAIM AGAINST THE  PROPER-
TY,  FROM THE THEN REMAINING PROCEEDS THE AMOUNT THEN DUE TO SUCH PERSON
OR ENTITY, IN THE PRIORITY THEREOF, OR SO MUCH  AS  THE  THEN  REMAINING
PROCEEDS WILL PAY.
  2.  ALL  SURPLUS  MONEYS  ARISING  FROM  THE SALE AFTER PAYMENT OF THE
AMOUNTS DUE UNDER PARAGRAPHS (A), (B) AND (C) OF SUBDIVISION ONE OF THIS
SECTION SHALL BE PAID TO THE COUNTY TREASURER FOR THE  COUNTY  IN  WHICH
THE  SALE  TOOK PLACE BY THE PERSON CONDUCTING THE SALE WITHIN FIVE DAYS
AFTER THE SAME SHALL BE RECEIVED, IN LIKE MANNER AND WITH LIKE EFFECT AS
IF THE PROCEEDING TO FORECLOSE THE MORTGAGE OCCURRED PURSUANT TO ARTICLE
THIRTEEN OF THIS CHAPTER.
  S 1414. REPORT OF SALE. 1. WITHIN FIFTEEN DAYS  AFTER  COMPLETING  THE
SALE  AND  EXECUTING  THE PROPER CONVEYANCE TO THE PURCHASER, THE PERSON
CONDUCTING THE SALE SHALL MAKE A REPORT OF THE SALE, WHICH SHALL STATE:
  (A) THE TIME WHEN AND THE PLACE WHERE THE SALE WAS MADE;
  (B) THE SUM BID FOR EACH DISTINCT PARCEL SEPARATELY SOLD;
  (C) THE NAME OF THE PURCHASER OF EACH DISTINCT PARCEL; AND
  (D) THE NAME OF EACH PERSON OR ENTITY, COURT OFFICER OR OTHER OFFICER,
TO WHOM PROCEEDS OF THE SALE WAS PAID, AND THE SUM THEREOF.
  2. THE REPORT OF SALE SHALL CONTAIN:
  (A) AFFIDAVIT OF THE PUBLICATION OF THE NOTICE OF  SALE,  AND  OF  THE
NOTICE  OR  NOTICES OF POSTPONEMENT, IF ANY, BY THE PUBLISHER OR PRINTER
OF THE NEWSPAPER IN WHICH THEY WERE PUBLISHED,  OR  BY  THE  PUBLISHER'S
FOREMAN OR PRINCIPAL CLERK;
  (B) COPIES OF THE AFFIDAVIT OR AFFIDAVITS, OF THE SERVICE OF COPIES OF
THE NOTICE OF INTENTION TO FORECLOSE AND THE NOTICE OF PENDENCY THERETO-
FORE FILED WITH THE CLERK OF THE COURT; AND
  (C) THE TERMS OF SALE AND EXECUTED MEMORANDUM OF SALE.
  3.  THE REPORT SHALL SPECIFY THE AMOUNT CLAIMED TO BE DUE BY THE MORT-
GAGEE ON THE INDEBTEDNESS SECURED BY THE  MORTGAGE,  TOGETHER  WITH  ALL
OTHER  SUMS RECOVERABLE UNDER SECTION FOURTEEN HUNDRED SEVENTEEN OF THIS
ARTICLE, THE AMOUNT DISTRIBUTED BY THE PERSON CONDUCTING THE SALE PURSU-
ANT TO SECTION FOURTEEN HUNDRED THIRTEEN OF THIS ARTICLE, AND  TO  WHOM,
AND  THE  AMOUNT  OF  THE DEFICIENCY OR SURPLUS AFTER APPLICATION OF THE
PROCEEDS OF SALE THERETO. THE REPORT SHALL CONTAIN THE MORTGAGEE'S AFFI-
DAVIT SPECIFYING THE AMOUNT CLAIMED DUE BY THE MORTGAGEE ON THE  INDEBT-
EDNESS SECURED BY THE MORTGAGE, TOGETHER WITH ALL OTHER SUMS RECOVERABLE
UNDER SECTION FOURTEEN HUNDRED SEVENTEEN OF THIS ARTICLE.
  4.  THE  MATTERS REQUIRED TO BE CONTAINED IN ANY OR ALL OF THE AFFIDA-
VITS SPECIFIED HEREIN MAY BE CONTAINED IN ONE AFFIDAVIT, WHERE THE  SAME
PERSON  DEPOSES WITH RESPECT TO THEM. A COPY OF THE NOTICE OF SALE SHALL
BE ANNEXED TO EACH AFFIDAVIT.
  S 1415. FILING OF REPORT OF SALE. 1. THE REPORT AND AFFIDAVITS  SPECI-
FIED  IN  SECTION  FOURTEEN  HUNDRED  FOURTEEN  OF THIS ARTICLE SHALL BE
FILED, IN THE SAME MANNER AS THE FILING OF THE NOTICE OF PENDENCY PURSU-

A. 8993--A                         12

ANT TO SUBDIVISION TWO OF SECTION FOURTEEN HUNDRED THREE OF  THIS  ARTI-
CLE,  IN  THE  COUNTY  CLERK'S  OFFICE IN THE COUNTY WHERE THE SALE TOOK
PLACE WITHIN THIRTY DAYS AFTER THE COMPLETION OF THE SALE AND  EXECUTION
OF  THE  PROPER  CONVEYANCE  TO  THE PURCHASER, AND, AS SUCH, CONSTITUTE
PRESUMPTIVE EVIDENCE OF THE MATTERS OF FACT THEREIN STATED, WITH RESPECT
TO ANY MORTGAGED PROPERTY SOLD WHICH IS SITUATED IN THAT COUNTY.
  2. EACH COUNTY CLERK IN THIS STATE IN  WHOSE  OFFICE  REPORTS  OF  THE
FORECLOSURE  OF  MORTGAGES  BY POWER OF SALE HAVE BEEN OR SHALL BE FILED
PURSUANT TO THE PROVISIONS OF THE FOREGOING SUBDIVISION OF THIS SECTION,
IS HEREBY AUTHORIZED TO DELIVER CERTIFIED COPIES  OF  THE  SAME  TO  THE
PURCHASER  OF  THE  MORTGAGED PROPERTY ON THE FORECLOSURE SALE OR TO ANY
MORTGAGOR, OBLIGOR ON THE NOTE OR BOND, OWNER OF, OR ANY OTHER PERSON OR
ENTITY HAVING A SUBORDINATE INTEREST IN  OR  LIEN  UPON,  THE  MORTGAGED
PROPERTY WHICH WAS FORECLOSED BY THE SALE, UPON REQUEST THEREFOR.
  S  1416. MULTIPLE COLLATERAL; DESIGNATION OF ORDER OF SALE OF PARCELS.
WHERE THE INDEBTEDNESS IS SECURED BY MORE THAN ONE MORTGAGE ON MORTGAGED
PROPERTY CONSISTING OF MORE THAN ONE FUNCTIONALLY SEPARATE AND  DISTINCT
PROPERTY, UNLESS OTHERWISE PROVIDED IN THE MORTGAGE OR IN ANY EXTENSION,
AMENDMENT OR MODIFICATION THEREOF OR INSTRUMENT AMENDATORY THERETO, EACH
PROPERTY  SHALL BE SOLD EITHER (A) SEPARATELY IN THE ORDER DESIGNATED BY
THE MORTGAGEE (WHICH MAY BE ON A SINGLE SALE DATE, OR ON SEPARATE  DATES
AS  PROVIDED  IN  THE  NOTICE  OF SALE), OR (B) AS OTHERWISE DIRECTED BY
ORDER OF THE SUPREME COURT FOR THE COUNTY IN WHICH THE SALE IS  TO  TAKE
PLACE, PURSUANT TO A MOTION MADE UNDER THE INDEX NUMBER OF THE NON-JUDI-
CIAL  PROCEEDING  FOR  FORECLOSURE OF POWER OF SALE. THE MORTGAGEE SHALL
NOT SCHEDULE OR CONDUCT THE SALE OF THE SUBSEQUENT  PROPERTY  SO  DESIG-
NATED  UNTIL AFTER THE DEFICIENCY HAS BEEN DETERMINED IN ACCORDANCE WITH
SECTION FOURTEEN HUNDRED NINETEEN OF  THIS  ARTICLE,  WHEREUPON  IN  THE
EVENT  A  DEFICIENCY  EXISTS, THE MORTGAGEE MAY SCHEDULE AND CONDUCT THE
SALE OF THE SUBSEQUENT PROPERTY IN THE ORDER DESIGNATED BY THE MORTGAGEE
UNLESS THE COURT ORDERS OTHERWISE, SUCH SALE TO BE CONDUCTED IN  ACCORD-
ANCE WITH THE PROVISIONS OF THIS ARTICLE.
  S 1417. COSTS AND EXPENSES ALLOWED. THE MORTGAGEE SHALL BE ENTITLED TO
RECOVER OUT OF THE PROCEEDS OF SALE, OR UPON APPLICATION FOR A DEFICIEN-
CY  JUDGMENT, THE COSTS AND EXPENSES OF: (A) ADVERTISEMENT OF THE NOTICE
OF SALE, AS DETERMINED BY PAID RECEIPTS THEREFOR;  (B)  SERVICE  OF  THE
NOTICE OF INTENTION TO FORECLOSE AND THE NOTICE OF SALE; (C) PREPARATION
AND  FILING  OF THE AFFIDAVITS REQUIRED UNDER THIS ARTICLE, THE POWER OF
SALE DEED, AND REPORT OF SALE; (D) THE CONDUCT OF  THE  SALE,  INCLUDING
THE  FEE  OF  THE OFFICER CONDUCTING THE SALE, WHICH, EXCEPT AS SHALL BE
DIRECTED BY THE COURT,  SHALL  NOT  EXCEED  ONE  THOUSAND  DOLLARS;  (E)
RECORDING OF THE DEED IF THE MORTGAGEE IS THE PURCHASER AT THE SALE; (F)
FILING  OR  RECORDING  THE  MORTGAGE  IF NOT THERETOFORE PAID FOR BY THE
MORTGAGOR; AND (G) THE REASONABLE ATTORNEYS' FEES INCURRED IN CONNECTION
WITH THE NON-JUDICIAL PROCEEDING UNDER THIS  ARTICLE  WHICH,  EXCEPT  AS
SHALL  BE DIRECTED BY THE COURT, SHALL NOT EXCEED THE SUM OF THIRTY-FIVE
HUNDRED DOLLARS.
  S 1418. APPLICATION FOR SURPLUS. 1. ANY PERSON OR ENTITY CLAIMING  THE
SURPLUS  MONEYS  ARISING  FROM  THE SALE OF THE MORTGAGED PROPERTY, OR A
PART THEREOF, MAY, WITHIN TWENTY DAYS AFTER THE FILING OF THE REPORT  OF
THE  SALE,  FILE  UNDER  THE  INDEX  NUMBER ASSIGNED TO THE NON-JUDICIAL
PROCEEDING IN THE OFFICE OF THE CLERK OF THE COUNTY WHERE THE SALE  TOOK
PLACE,  A  WRITTEN NOTICE OF THE CLAIM, STATING THE NATURE AND EXTENT OF
THE CLAIM. THEREAFTER, AN APPLICATION, WITH PROOF OF  SERVICE  UPON  THE
MORTGAGOR,  THE  RECORD  OWNER  OF THE MORTGAGED PROPERTY, AND ANY OTHER
PERSON WHO OR ENTITY WHICH HAS FILED A CLAIM TO THE SURPLUS  MONEYS  MAY

A. 8993--A                         13

BE  MADE  BY  ANY  PERSON  WHO  OR ENTITY WHICH HAS FILED A CLAIM TO THE
SURPLUS MONEYS, SEEKING AN ORDER DIRECTING PAYMENT THEREOF  OUT  OF  THE
SURPLUS MONEYS.
  2. UPON SUCH APPLICATION, OR AT ANY TIME WITHIN THREE MONTHS THEREAFT-
ER, ON NOTICE TO ALL PERSONS WHO OR ENTITIES WHICH HAVE BEEN SERVED WITH
THE  NOTICE  OF  SALE  OR FILED CLAIMS TO THE SURPLUS MONEY, OR ANY PART
THEREOF, ON MOTION OF ANY PERSON WHO OR ENTITY WHICH HAS FILED A  NOTICE
OF CLAIM TO THE SURPLUS MONEY, OR ANY PART THEREOF, THE COURT, BY REFER-
ENCE  OR  OTHERWISE,  SHALL  ASCERTAIN  AND REPORT THE AMOUNT DUE TO THE
APPLICANT, OR TO ANY PERSON WHO OR ENTITY WHICH HAS A LIEN ON  OR  CLAIM
TO  SUCH  SURPLUS  MONEY,  OR  ANY PART THEREOF, AND THE PRIORITY OF THE
SEVERAL LIENS OR CLAIMS THEREON, AND SHALL  ORDER  DISTRIBUTION  OF  THE
SURPLUS MONEYS BY THE COUNTY TREASURER.
  3.  THE OWNER OF THE EQUITY OF REDEMPTION, OR ANY PERSON WHO OR ENTITY
WHICH HAS RESPONDED TO THE APPLICATION, OR  ANY  PERSON  WHO  OR  ENTITY
WHICH  FILES  A NOTICE OF CLAIM OR HAS A RECORDED LIEN AGAINST THE MORT-
GAGED PROPERTY SHALL BE GIVEN NOTICE BY MAIL OR IN SUCH OTHER MANNER  AS
THE  COURT  SHALL  DIRECT,  TO  ATTEND ANY HEARING ON DISPOSITION OF THE
SURPLUS MONEYS AND SHALL HAVE THE RIGHT TO RECEIVE DISTRIBUTION  OF  THE
SURPLUS  MONEYS,  OR  ANY PORTION THEREOF, IN ANY MANNER DIRECTED BY THE
COURT.
  S 1419. DEFICIENCY JUDGMENT. 1. UNLESS OTHERWISE AGREED BY THE MORTGA-
GOR AND THE MORTGAGEE IN THE MORTGAGE, A PERSON WHO OR ENTITY WHICH OWES
PAYMENT OF AN OBLIGATION SECURED BY THE MORTGAGE FORECLOSED  UNDER  THIS
ARTICLE IS LIABLE FOR THE WHOLE RESIDUE, OR SO MUCH THEREOF AS THE COURT
MAY  DETERMINE, OF THE DEBT REMAINING UNSATISFIED, AFTER THE SALE OF THE
MORTGAGED PROPERTY AND THE APPLICATION OF THE PROCEEDS,  THE  AMOUNT  OF
THE  DEBT  REMAINING UNSATISFIED TO BE DETERMINED BY THE COURT AS HEREIN
PROVIDED.
  2. NOT LATER THAN NINETY DAYS AFTER THE DELIVERY TO THE  PURCHASER  OF
THE  POWER OF SALE DEED TO THE MORTGAGED PROPERTY, THE PERSON TO WHOM OR
ENTITY TO WHICH SUCH RESIDUE SHALL BE  OWING  MAY  MAKE  AN  APPLICATION
UNDER  THE  INDEX  NUMBER  ASSIGNED  THE NON-JUDICIAL PROCEEDING, IN THE
SUPREME COURT FOR THE COUNTY IN WHICH THE MORTGAGED PROPERTY IS LOCATED,
OR IN A COUNTY IN WHICH THE SALE HAS TAKEN PLACE FOR A DEFICIENCY  JUDG-
MENT AGAINST THE PERSONS OR ENTITIES LIABLE THEREFOR UPON NOTICE TO SUCH
PERSONS  OR  ENTITIES. SUCH NOTICE SHALL BE SERVED PERSONALLY OR IN SUCH
OTHER MANNER AS THE COURT MAY DIRECT. UPON SUCH APPLICATION, THE  COURT,
WHETHER OR NOT THE PERSON OR ENTITY CLAIMED TO BE LIABLE FOR THE RESIDUE
APPEARS,  SHALL  DETERMINE,  UPON  REASONABLE APPRAISAL BY A REAL ESTATE
APPRAISER LICENSED IN THE STATE OF NEW YORK, OR OTHERWISE  AS  IT  SHALL
DIRECT,  THE  FAIR AND REASONABLE MARKET VALUE OF THE MORTGAGED PROPERTY
AS OF THE DATE THE MORTGAGED PROPERTY WAS BID  ON  AT  AUCTION  OR  SUCH
NEAREST  EARLIER  DATE AS THERE SHALL HAVE BEEN ANY MARKET VALUE THEREOF
AND SHALL MAKE AN ORDER DIRECTING THE ENTRY  OF  A  DEFICIENCY  JUDGMENT
AGAINST  THE  PERSON OR ENTITY LIABLE THEREFOR. SUCH DEFICIENCY JUDGMENT
SHALL BE FOR AN AMOUNT EQUAL TO THE AGGREGATE AMOUNT OF THE INDEBTEDNESS
DUE TO THE MORTGAGEE, TOGETHER WITH ALL  OTHER  SUMS  RECOVERABLE  UNDER
SECTION  FOURTEEN HUNDRED SEVENTEEN OF THIS ARTICLE AS SUCH SHALL BE SET
FORTH IN THE REPORT OF SALE PURSUANT TO  SUBDIVISION  THREE  OF  SECTION
FOURTEEN HUNDRED FOURTEEN OF THIS ARTICLE LESS THE HIGHER OF: (A) MARKET
VALUE  OF  THE  MORTGAGED PROPERTY AS DETERMINED BY THE COURT OR (B) THE
SALES PRICE OF THE MORTGAGED PROPERTY AT THE PUBLIC SALE.
  3. IF NO APPLICATION FOR A DEFICIENCY JUDGMENT SHALL BE MADE AS HEREIN
PRESCRIBED, THE PROCEEDS OF THE SALE REGARDLESS OF  THE  AMOUNT  THEREOF

A. 8993--A                         14

SHALL  BE DEEMED TO BE IN FULL SATISFACTION OF THE MORTGAGE DEBT, AND NO
RIGHT TO RECOVER ANY DEFICIENCY IN ANY ACTION OR PROCEEDING SHALL EXIST.
  S 1420. RECEIVER. 1. WHERE THE MORTGAGE PROVIDES THAT THE MORTGAGEE IS
ENTITLED  TO  THE  APPOINTMENT OF A RECEIVER FOR THE MORTGAGED PROPERTY,
THE MORTGAGEE SHALL HAVE THE RIGHT AT ANY TIME AFTER THE FILING  OF  THE
NOTICE  OF  PENDENCY  PURSUANT TO SECTION FOURTEEN HUNDRED THREE OF THIS
ARTICLE TO MAKE AN APPLICATION UNDER THE INDEX NUMBER  ASSIGNED  TO  THE
NON-JUDICIAL PROCEEDING, IN THE SUPREME COURT IN THE COUNTY IN WHICH THE
SALE TAKES PLACE, FOR THE APPOINTMENT OF A RECEIVER.
  2.  WHERE THE MORTGAGE PROVIDES THAT A RECEIVER MAY BE APPOINTED WITH-
OUT NOTICE OR CONTAINS THE COVENANT SET  FORTH  IN  SUBDIVISION  TEN  OF
SECTION  TWO  HUNDRED  FIFTY-FOUR OF THE REAL PROPERTY LAW, NOTICE OF AN
APPLICATION FOR SUCH APPOINTMENT SHALL NOT BE REQUIRED AND THE  RECEIVER
SHALL  BE  APPOINTED  BY THE COURT PURSUANT TO AN ORDER SUBMITTED BY THE
MORTGAGEE SIMULTANEOUSLY WITH, OR AT ANY TIME AFTER, THE FILING  OF  THE
APPLICATION THEREFOR.
  3.  WHERE  A  RECEIVER HAS BEEN APPOINTED, UPON THE APPLICATION OF THE
MORTGAGEE, THE COURT MAY DIRECT THAT THE RECEIVER OF THE RENTS APPLY THE
RENTS RECEIVED BY THE RECEIVER TOWARDS THE PAYMENT OF  ACCRUED  INTEREST
ON  THE  MORTGAGE,  PROVIDED  DUE PROVISION SHALL HAVE BEEN MADE FOR THE
PAYMENT OF TAXES AND ORDINARY AND NECESSARY EXPENSES FOR THE  OPERATION,
REPAIR AND MAINTENANCE OF THE MORTGAGED PROPERTY AND SUCH OTHER EXPENSES
AS  THE  COURT MAY DIRECT. ANY MONEYS SO PAID OVER BY THE RECEIVER SHALL
BE DEDUCTED FROM THE AMOUNT DUE ON THE MORTGAGE, OR THE  NOTE,  BOND  OR
OBLIGATION SECURED THEREBY, AND THE MORTGAGEE'S AFFIDAVIT OF THE INDEBT-
EDNESS  FILED  WITH  THE  REPORT  OF  SALE  PURSUANT TO SECTION FOURTEEN
HUNDRED FOURTEEN OF THIS ARTICLE SHALL SO STATE THE AMOUNTS THEREOF.
  4.  THE RECEIVER SHALL BE ENTITLED TO SUCH COMMISSIONS, NOT  EXCEEDING
FIVE  PERCENT OF THE GREATER OF (A) THE SUMS RECEIVED BY THE RECEIVER OR
(B) THE SUMS DISBURSED BY THE  RECEIVER,  AS  THE  COURT  BY  WHICH  THE
RECEIVER IS APPOINTED ALLOWS.
  S 1421. RIGHT TO SEEK JUDICIAL INTERVENTION; MORTGAGEE'S LIABILITY FOR
FAILURE  TO  COMPLY  WITH  THIS  ARTICLE.  1. IF THE MORTGAGEE COMMENCES
PROCEEDINGS UNDER THIS ARTICLE TO FORECLOSE A  MORTGAGE,  OR  EXTENSION,
AMENDMENT,  MODIFICATION OR CONSOLIDATION THEREOF, EXECUTED PRIOR TO THE
EFFECTIVE DATE OF THIS ARTICLE, THE MORTGAGOR MAY BY WRITTEN  NOTICE  TO
THE  MORTGAGEE REQUIRE THAT FURTHER FORECLOSURE PROCEEDINGS BE CONDUCTED
JUDICIALLY AS PROVIDED IN ARTICLE THIRTEEN OF THIS CHAPTER. SUCH  NOTICE
MUST  BE  DELIVERED TO THE MORTGAGEE BY REGISTERED OR CERTIFIED MAIL, OR
SUCH OTHER METHOD AS MAY BE SPECIFIED IN THE  MORTGAGE,  POSTMARKED  NOT
LATER  THAN  FORTY DAYS AFTER THE DATE THE MORTGAGOR RECEIVES THE NOTICE
OF INTENTION TO FORECLOSE AS PROVIDED IN THIS ARTICLE, AND  SHALL  STATE
(A)  THE  DATE ON WHICH THE MORTGAGE, OR EXTENSION, AMENDMENT, MODIFICA-
TION OR CONSOLIDATION THEREOF, THAT THE MORTGAGEE SEEKS TO FORECLOSE WAS
EXECUTED, AND (B) THAT THE MORTGAGOR IS EXERCISING ITS RIGHT UNDER  THIS
SECTION  TO  REQUIRE  THAT  THE FORECLOSURE OF THE MORTGAGE BE CONDUCTED
THROUGH THE JUDICIAL PROCESS.
  2. IF THE MORTGAGEE COMMENCES PROCEEDINGS UNDER THIS ARTICLE TO  FORE-
CLOSE A MORTGAGE, OR EXTENSION, AMENDMENT, MODIFICATION OR CONSOLIDATION
THEREOF,  EXECUTED AFTER THE EFFECTIVE DATE OF THIS ARTICLE, THE MORTGA-
GOR, NOT LATER THAN FORTY DAYS AFTER THE DATE IT RECEIVES THE NOTICE  OF
INTENTION  TO FORECLOSE AS PROVIDED IN THIS ARTICLE, MAY APPLY, BY ORDER
TO SHOW CAUSE, TO THE SUPREME COURT IN THE COUNTY IN WHICH THE MORTGAGED
PROPERTY IS LOCATED FOR AN ORDER DIRECTING THAT FURTHER  PROCEEDINGS  BE
CONDUCTED PURSUANT TO ARTICLE THIRTEEN OF THIS CHAPTER, AND FOR A TEMPO-
RARY  RESTRAINING  ORDER  STAYING FURTHER PROCEEDINGS UNDER THIS ARTICLE

A. 8993--A                         15

PENDING A HEARING OF THE APPLICATION. THE APPLICATION SHALL INCLUDE  ONE
OR  MORE  AFFIDAVITS  (A) STATING WHETHER A PREVIOUS APPLICATION FOR THE
SAME OR SIMILAR RELIEF HAS BEEN MADE, AND IF SO THE OUTCOME THEREOF, AND
(B) STATING FACTS TO SUPPORT ONE OR MORE OF THE FOLLOWING ALLEGATIONS:
  (1)  THAT  THE  MORTGAGE,  OR  EXTENSION,  AMENDMENT,  MODIFICATION OR
CONSOLIDATION THEREOF, SOUGHT  TO  BE  FORECLOSED  DOES  NOT  CONTAIN  A
PROVISION  PERMITTING  THE FORECLOSURE THEREOF BY POWER OF SALE OR OTHER
NON-JUDICIAL MEANS;
  (2) THAT THE OBLIGATION SECURED BY THE  MORTGAGE  IS  INVALID  OR  NOT
OTHERWISE DUE;
  (3)  THAT THE MORTGAGOR IS NOT IN DEFAULT UNDER THE MORTGAGE OR OTHER-
WISE HAS A MERITORIOUS DEFENSE TO THE FORECLOSURE THEREOF;
  (4) THAT THE MORTGAGEE HAS NOT COMPLIED WITH THE TERMS AND  CONDITIONS
OF THIS ARTICLE; OR
  (5)  THAT  UNDER THE FACTS AND CIRCUMSTANCES, ALLOWING THE FORECLOSURE
TO PROCEED UNDER THIS ARTICLE WOULD CAUSE AN UNDUE HARDSHIP TO THE MORT-
GAGOR.
  3. IF THE APPLICATION IS GRANTED, THE FORECLOSURE  SHALL,  UNLESS  THE
COURT  SUBSEQUENTLY  ORDERS OTHERWISE, PROCEED PURSUANT TO ARTICLE THIR-
TEEN OF THIS CHAPTER FOR THE JUDICIAL FORECLOSURE OF THE MORTGAGE.
  4. IF THE APPLICATION IS DENIED, THE SALE MAY PROCEED PURSUANT TO THIS
ARTICLE.
  5. AT ANY TIME  THE  MORTGAGEE  MAY,  WITHOUT  PREJUDICE,  VOLUNTARILY
DISCONTINUE  PROCEEDINGS  UNDER  THIS ARTICLE AND PURSUE SUCH RIGHTS AND
REMEDIES AS MAY BE AVAILABLE TO IT UNDER ARTICLE THIRTEEN OF THIS  CHAP-
TER.
  6. AFTER RECEIVING THE NOTICE OF INTENTION TO FORECLOSE, AN INTERESTED
PARTY  OTHER  THAN  THE MORTGAGOR MAY PETITION THE COURT FOR RELIEF ONLY
PURSUANT TO THE PROVISIONS OF ARTICLE SIXTY-THREE OF THE CIVIL  PRACTICE
LAW  AND  RULES.  THE  COURT  SHALL  APPLY THE STANDARDS FOR PRELIMINARY
INJUNCTIVE  RELIEF  AND  SHALL  CONSIDER  WHETHER  GRANTING  THE  RELIEF
REQUESTED  WILL  PREJUDICE THE SUBSTANTIAL RIGHTS OF ANY PARTY OR UNDULY
DELAY THE ADJUDICATION OF SUCH RIGHTS.
  7. ANY PERSON ENTITLED TO RECEIVE NOTICE OF THE INTENTION TO FORECLOSE
OR NOTICE OF SALE UNDER THIS ARTICLE MAY RECOVER FROM THE MORTGAGEE  ANY
DAMAGES CAUSED BY THE FAILURE OF THE MORTGAGEE TO COMPLY WITH THE PROCE-
DURES AND CONDITIONS SET FORTH IN THIS ARTICLE.
  S 1422. DATA COLLECTION AND REPORT. 1. THE SUPERINTENDENT OF BANKS, IN
COOPERATION  WITH  THE  OFFICE  OF COURT ADMINISTRATION, SHALL DEVELOP A
FORM WHICH SHALL BE COMPLETED AND FILED  BY  THE  MORTGAGEE  WITH  EVERY
NOTICE OF PENDENCY FILED UNDER THIS ARTICLE WHICH SHALL INCLUDE:
  (A) THE VALUE OF PROPERTY BEING FORECLOSED, IF KNOWN;
  (B) THE AMOUNT AND DATE OF MORTGAGE;
  (C) THE LOCATION OF THE PROPERTY; AND
  (D) THE AMOUNT IN DEFAULT ON THE MORTGAGE.
  UPON  RECEIPT, SUCH FORM SHALL BE FORWARDED BY THE COUNTY CLERK TO THE
SUPERINTENDENT OF BANKS.
  2. IN THE EVENT THAT THE PROCEEDING UNDER THIS ARTICLE  IS  DISCONTIN-
UED,  THE  SUPERINTENDENT  OF  BANKS,  IN COOPERATION WITH THE OFFICE OF
COURT ADMINISTRATION, SHALL DEVELOP A FORM WHICH SHALL BE COMPLETED  AND
FILED  BY  THE MORTGAGEE WITH THE DISCONTINUANCE WHICH SHALL INCLUDE THE
REASON FOR THE DISCONTINUANCE.
  UPON RECEIPT, SUCH FORM SHALL BE FORWARDED BY THE COUNTY CLERK TO  THE
SUPERINTENDENT OF BANKS.
  3.  IN THE EVENT THAT THE PROPERTY IS SOLD AT AUCTION, THE SUPERINTEN-
DENT OF BANKS, IN COOPERATION WITH THE OFFICE OF  COURT  ADMINISTRATION,

A. 8993--A                         16

SHALL DEVELOP A FORM WHICH SHALL BE COMPLETED AND FILED BY THE MORTGAGEE
WITH  THE REPORT OF SALE PURSUANT TO SECTION FOURTEEN HUNDRED FIFTEEN OF
THIS ARTICLE AND SHALL INCLUDE:
  (A) THE AUCTION PRICE OF THE PROPERTY;
  (B) THE AMOUNT OF SURPLUS MONEY, IF ANY; AND
  (C) THE AMOUNT OF ADDITIONAL MONEY OWED ON THE PROPERTY, IF ANY.
  UPON  RECEIPT, SUCH FORM SHALL BE FORWARDED BY THE COUNTY CLERK TO THE
SUPERINTENDENT OF BANKS.
  4. THE SUPERINTENDENT OF BANKS SHALL COMPILE SUCH INFORMATION RECEIVED
PURSUANT TO THIS SECTION AND MAKE A REPORT OF FINDINGS TO THE  GOVERNOR,
THE  TEMPORARY  PRESIDENT OF THE SENATE AND THE SPEAKER OF THE ASSEMBLY,
NO LATER THAN JUNE FIRST, TWO THOUSAND TEN.
  S 2. Paragraph 1 of subdivision (a) of section 9-601  of  the  uniform
commercial  code, as added by chapter 84 of the laws of 2001, is amended
to read as follows:
  (1) may reduce a claim to judgment, foreclose,  or  otherwise  enforce
the  claim,  security  interest,  or  agricultural lien by any available
judicial procedure; PROVIDED, HOWEVER, THAT IN THE CASE  OF  A  SECURITY
INTEREST IN A COOPERATIVE INTEREST, THE EXCLUSIVE REMEDY TO FORECLOSE OR
ENFORCE  SUCH  CLAIM  SHALL  BE  ARTICLE  THIRTEEN  OF THE REAL PROPERTY
ACTIONS AND PROCEEDINGS LAW; and
  S 3. The real property actions  and  proceedings  law  is  amended  by
adding a new section 1301-a to read as follows:
  S  1301-A.  SECURITY INTERESTS IN A COOPERATIVE INTEREST. THIS ARTICLE
SHALL EXPRESSLY APPLY TO ACTIONS TO FORECLOSE OR ENFORCE A CLAIM REGARD-
ING A SECURITY INTEREST IN  A  COOPERATIVE  INTEREST  ESTABLISHED  UNDER
ARTICLE  NINE  OF  THE  UNIFORM  COMMERCIAL  CODE.  REAL  PROPERTY SHALL
INCLUDE, FOR PURPOSES OF THIS ARTICLE, THE  OWNERSHIP  OF  SHARES  IN  A
COOPERATIVE INTEREST.
  S  4.  This  act shall take effect July 1, 2009; provided that if this
act shall not have become a law on or before  July  1,  2009,  this  act
shall  take  effect immediately and shall be deemed to have been in full
force and effect on and after July 1, 2009; article 14 of the real prop-
erty actions and proceedings law, as added by section one of  this  act,
shall expire and be deemed repealed July 1, 2010, but such article shall
continue  to apply to any non-judicial proceeding in which the notice of
pendency was filed before July 1, 2010.