N.Y. Private Housing Finance Law 23-C – Mortgage modifications
§ 23-c. Mortgage modifications. 1. For the purposes of this section, the following terms shall have the meanings set forth below:
Terms Used In N.Y. Private Housing Finance Law 23-C
- Lien: A claim against real or personal property in satisfaction of a debt.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
(a) "Existing mortgage" shall mean any mortgage held by the municipality securing a loan made by such municipality in accordance with the provisions of this article, and any note or bond evidencing indebtedness thereon, including, but not limited to, any mortgage, note or bond securing residual indebtedness and any mortgage, note or bond securing a loan to finance the construction of a project.
b. "Non-recoverable debt service" shall mean, with respect to any increase in indebtedness executed or approved pursuant to this section that is not attributable to project cost, all payments of interest and principal on such portion of the indebtedness.
(c) "Restrictive agreement" shall mean a binding agreement between a company and the supervising agency, which (i) prohibits the dissolution of the company pursuant to the provisions of section thirty-five of this article for not less than six years from the date of such agreement, and (ii) prohibits the consideration of non-recoverable debt service in any rent increase pursuant to the provisions of section thirty-one of this article at any time subsequent to the date of such agreement.
2. Notwithstanding the provisions of this article or the provisions of any law, general or special, a company that enters into a restrictive agreement on or after the effective date of a chapter of the laws of 2004 which added this subdivision, may, with the approval of such supervising agency:
(a) substitute a new mortgage approved by the supervising agency for any existing mortgage;
(b) extend or modify any existing mortgage in such manner and for such term as shall be determined by the supervising agency;
(c) subordinate any existing mortgage in any manner approved by the supervising agency to the lien of any mortgage held by a lender that is authorized to participate in loans pursuant to section twenty-three-b of this article; and
(d) borrow funds and secure the repayment thereof by note and mortgage or in any other manner approved by the supervising agency.