N.Y.
Real Property Law Section 127
Restrictions on trustees
1.
No trustee shall accept a trust or act as trustee under a trust mortgage affecting any property in which he or any of the officers or directors of the trustee shall have, directly or indirectly, any financial interest.2.
No trustee nor any officer or director of a trustee, nor any employee of any company which is a subsidiary of, controlled by or affiliated with the trustee shall, either directly or indirectly, act as insurance broker or agent in connection with the placing or writing of any insurance of any kind on any property affected or covered by a mortgage held by such trustee under a trust indenture, deed of trust, or other similar instrument, nor shall such trustee be an officer, director, partner or employee of or otherwise connected with or have any financial interest in, directly or indirectly, in any firm, agency, business, association or corporation that shall act as broker or agent in connection with the placing or writing of such insurance; nor shall any trustee or any officer, director or employee of the trustee be an officer, director, partner or an employee of or have any financial interest in any firm, agency, association or corporation engaged by such trustee as his or its representative or agent in the management or supervision of, or the collection of rents and income from any property affected or covered by the mortgage held by the trustee under a trust indenture, deed of trust, or other similar instrument.3.
No trustee shall accept any trust or act as trustee under any other trust indenture covering or affecting the same property.4.
No owner or mortgagor of any property covered by a trust indenture, deed of trust, or other similar instrument and no officer, director, stockholder or employee of such owner or mortgagor shall accept a trust or act as trustee with respect to such property.5.
The provisions of this section shall only apply to trust indentures or mortgages hereafter entered into.
Source:
Section 127 — Restrictions on trustees, https://www.nysenate.gov/legislation/laws/RPP/127 (updated Sep. 22, 2014; accessed Oct. 26, 2024).
