N.Y. Private Housing Finance Law Section 20
Mortgages, mortgage bonds and notes


1.

Any company, subject to the approval of the commissioner or of the supervising agency, as the case may be, may borrow funds and secure the repayment thereof by bond or note and mortgage or by an issue of bonds under a trust indenture.

2.

Each loan made to a company shall relate to one or more specified projects and shall be secured by a mortgage upon all of the real property of which the project or projects, to which the loan relates, consists, and upon all fixtures and articles of personal property attached to or used in connection with the operation of such project or projects. Such mortgages may contain such other clauses and provisions as shall be approved by the commissioner, or the supervising agency, as the case may be, including the right to assignment of rents and entry into possession in case of default; but the operation of such project or projects, in the event of such entry by a mortgagee or receiver, except in the case of a mortgage loan insured or held by the federal government, shall be subject to regulations promulgated by the commissioner or the supervising agency. Provisions for the amortization of the mortgage indebtedness and residual indebtedness of companies formed under this article shall be subject to the approval of the commissioner or the supervising agency, as the case may be. In the case of an instrument or instruments evidencing residual indebtedness issued pursuant to section twenty-three-a or section forty-four-b of this chapter, the principal amount of such instrument or instruments and the interest thereon, if any, shall be repaid over a period of time not exceeding the term over which the mortgage loan insured by the federal government is to be repaid, plus ten years, which period of time shall commence at such time as the commissioner or the supervising agency shall approve, provided, however, that such period of time shall not expire more than fifteen years after the mortgage loan insured by the federal government has been satisfied.

Source: Section 20 — Mortgages, mortgage bonds and notes, https://www.­nysenate.­gov/legislation/laws/PVH/20 (updated Sep. 22, 2014; accessed Mar. 23, 2024).

10
Short title
11
Policy and purposes of article
11–A
Additional policy and purposes of article
12
Definitions
13
Limited-profit housing companies
13–A
The applicability of not-for-profit corporation law
13–B
Verification of papers filed with supervising agency
13–C
Voting, election and referendum procedures
14
Consent of commissioner to incorporation
15
Participation by certain corporations and individuals
16
Limited-profit housing companies
17
Powers
18
Designation of and service of process on secretary of state and registered agent
19
Consideration for issuance of stock, bonds or income debentures
20
Mortgages, mortgage bonds and notes
21
Capital structure
22
State loans
22–A
Redevelopment loans
22–B
Loans for state-aided limited-profit housing companies
23
Municipal loans and municipally aided projects
23–A
Mortgage modifications, evidence of pre-existing indebtedness
23–B
Participation in loan or investment
23–C
Mortgage modifications
24
Income debentures
25
Working capital
26
Conditions and security for loans
26–A
Findings for municipally-aided projects
26–B
Special provisions with respect to state urban development corporation projects
26–C
Special provisions with respect to Battery Park city projects
27
Limitations
28
Payments from earnings
29
Acquisition of property
30
Transfer of real property
31
Rentals and selection of tenants
31–A
Resale price of shares
31–B
Assignment or pledge of tenant cooperator’s shares
31–C
Tenant-cooperators
32
Supervision and regulation
32–A
Additional supervision and regulation
32–B
Annual reports
33
Tax exemptions
34
Foreclosure and judgments
35
Voluntary dissolution
35–A
Requirements regarding dissolution
36
Sale of project prior to termination of tax exemption
36–A
Additional powers of municipalities
37
Separability clause

Accessed:
Mar. 23, 2024

Last modified:
Sep. 22, 2014

§ 20’s source at nysenate​.gov

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