§ 777. Application by mortgagee or lienor of record or other person
having an interest in the property. a. If, after a trial, the court
shall determine that the facts alleged in the petition have been
affirmatively established by the petitioners, that no defense thereto
specified in section seven hundred seventy-five of this article has been
affirmatively established by the owner or a mortgagee or lienor of
record, and that the facts alleged in the petition warrant the granting
of the relief sought, and if the owner or any mortgagee or lienor of
record or other person having an interest in the property, shall apply
to the court to be permitted to remove or remedy the conditions
specified in such petition and shall (1) demonstrate the ability
promptly to undertake the work required; and (2) post security for the
performance thereof within the time, and in the amount and manner,
deemed necessary by the court, then the court, in lieu of rendering
judgment as provided in section seven hundred seventy-six of this
article, may issue an order permitting such person to perform the work
within a time fixed by the court but in no event more than sixty days
from the date of the order of the court unless the court grants an
extension of time for good cause shown. The provisions of this
subdivision shall only be available to the mortgagee or lienor once with
respect to any petition filed pursuant to this article.

b. If, after the issuance of an order pursuant to subdivision a of
this section, but before the time fixed in such order for the completion
of the work prescribed therein, it shall appear to the petitioners that
the person permitted to do the same is not proceeding with due
diligence, the petitions may apply to the court on notice to those
persons who have appeared in the proceeding for a hearing to determine
whether judgment should be rendered immediately as provided in
subdivision c of this section.

c. If, upon a hearing authorized in subdivision b hereof, the court
shall determine that such owner, mortgagee, lienor or other person is
not proceeding with due diligence, or upon the failure of such owner,
mortgagee, lienor or other person to complete the work in accordance
with the provisions of said order, the court shall render a final
judgment appointing an administrator as authorized in section seven
hundred seventy-eight of this article. Such judgment shall direct the
administrator to apply the security posted by such person to the
removing or remedying of the condition or conditions specified in the
petition. In the event that the amount of such security should be
insufficient for such purpose, such judgment shall direct the deposit of
rents with the administrator, as authorized by section seven hundred
seventy-six of this article, to the extent of such deficiency. In the
event that such security should exceed the amount required to remove or
remedy such condition or conditions, such judgment shall direct the
administrator to file with the court, upon completion of the work
prescribed therein, a full accounting of the amount of such security and
the expenditures made pursuant to such judgment, and to turn over such
surplus to the person who posted such security, together with a copy of
such accounting.