New York § 20 - 20Mortgages, mortgage bonds and notes

§ 20. 20Mortgages, mortgage bonds and notes

§ 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.