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

                                   906

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            January 21, 2009
                               ___________

Introduced  by  Sen.  KRUGER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Judiciary

AN ACT to amend the  real  property  actions  and  proceedings  law,  in
  relation to proceedings to deposit rents

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

  Section 1. The real property actions and proceedings law is amended by
adding a new section 773-a to read as follows:
  S 773-A. RECEIVERSHIP NOT MATERIAL. 1. RECEIVERSHIP  SHALL  NOT  BE  A
DEFENSE  TO  ANY SPECIAL PROCEEDING PURSUANT TO THIS ARTICLE AND NO SUCH
PROCEEDING SHALL BE ADJOURNED, DELAYED OR DISMISSED EITHER  BECAUSE  THE
PETITIONER  HAS  NOT  OR  PETITIONERS  HAVE  NOT  REQUESTED  OR RECEIVED
APPROVAL OF SUCH PROCEEDING BY THE SUPREME COURT OR A  LAWSUIT  HAS  NOT
BEEN AUTHORIZED AGAINST A RECEIVER APPOINTED BY SUCH COURT OR A RECEIVER
HAS NOT BEEN NAMED OR SERVED WITH PROCESS IN SUCH PROCEEDING.
  2.  THIS  SECTION  SHALL  NOT  PROHIBIT A RECEIVER IN FORECLOSURE FROM
PARTICIPATION IN SUCH PROCEEDING, IF SUCH RECEIVER SO DESIRES.
  S 2. Section 778 of the real property actions and proceedings  law  is
amended by adding a new subdivision 11 to read as follows:
  11.  THE  EXISTENCE  OF  A  RECEIVER  FOR  THE  DWELLING  PRIOR TO THE
COMMENCEMENT OF THE PROCEEDING, OR APPLICATION FOR OR APPOINTMENT  OF  A
RECEIVER  AT ANY TIME PRIOR TO JUDGMENT OR APPOINTMENT OF AN ADMINISTRA-
TOR PURSUANT TO THIS ARTICLE, SHALL NOT AFFECT THE POWER OF THE COURT TO
APPOINT OR CONTINUE THE APPOINTMENT OF  SUCH  AN  ADMINISTRATOR,  EXCEPT
THAT THE RIGHTS OF THE OWNER, INCLUDING THE RIGHTS TO ANY SURPLUS PURSU-
ANT  TO  PARAGRAPH (E) OF SUBDIVISION ONE OF THIS SECTION, SHALL PASS TO
THE RECEIVER. IF SUCH RECEIVER HAS BEEN APPOINTED PRIOR  TO  APPOINTMENT
OF  AN ADMINISTRATOR, THE COURT MAY APPOINT SUCH RECEIVER AS ADMINISTRA-
TOR UNDER CIRCUMSTANCES WHERE IT IS CONVINCED THAT  SUCH  RECEIVER  WILL
PROPERLY  UNDERTAKE RESPONSIBILITY FOR CORRECTING ALL THE VIOLATIONS AND
DANGEROUS CONDITIONS, AND PROVIDE NECESSARY SERVICES TO THE DWELLING.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06439-01-9
              

S. 906                              2

  S 3. Section 1325 of the real property actions and proceedings law  is
amended by adding three new subdivisions 4, 5 and 6 to read as follows:
  4.  ANY  ORDER  PURSUANT  TO  THIS  ARTICLE WHICH DOES NOT INCLUDE THE
PROVISIONS REQUIRED BY SUBDIVISION THREE OF THIS SECTION, SHALL BE VOID-
ABLE.
  5. IF ANY RECEIVER DOES NOT REGISTER  WITH  THE  MUNICIPAL  DEPARTMENT
WITHIN  SEVEN DAYS AFTER THE DATE OF THE ORDER APPOINTING SUCH RECEIVER,
ALL ACTIONS TAKEN BY SUCH RECEIVER AFTER SAID SEVENTH DAY MAY BE  VOIDED
BY THE COURT; SUCH RECEIVER IS STAYED FROM COMMENCING ANY ACTIONS IN ANY
COURT UNTIL HE OR SHE IS SO REGISTERED.
  6.  WHEN ANY RECEIVER IS APPOINTED PURSUANT TO THIS SECTION, NO TENANT
OR MUNICIPAL AGENCY IS REQUIRED TO GET PRIOR APPROVAL FROM  THE  SUPREME
COURT BEFORE COMMENCING ANY ACTION AGAINST SAID RECEIVER.
  S  4. This act shall take effect on the first of October next succeed-
ing the date on which it shall have become a law.