§ 119. Purchase by mortgage trustee. Any banking corporation,
including corporations organized under the banking law and also national
banking associations authorized to act as trustees within this state,
which shall act as trustee, depository or in other representative or
fiduciary capacity in respect to any mortgage upon real property within
this state or upon some interest therein or in respect to any indenture
relating to such real property against which bonds or certificates of
parts or of shares have been issued to the public, may acquire such real
property in any foreclosure action now or hereafter pending; and in lieu
of paying cash therefor, may make settlement for the purchase price by
crediting upon the bond, mortgage or other obligation held by it, the
net proceeds of sale after deducting therefrom the expenses of the sale
and the costs of the action and any other sums which such trustee is
authorized to deduct under the mortgage, deed of trust or indenture. The
officer making such foreclosure sale shall accept such settlement
without requiring the production of the bonds, notes, certificates of
sharing, certificates of participation, or other security evidencing the
pro rata interest of the holders thereof in the mortgage or indenture
being foreclosed; and, without such production, there shall be deemed
credited thereon the pro rata share of the net proceeds of sale
ascertained and established as aforesaid.