New York § 122 - 122Transfer of title or foreclosure of project

§ 122. 122Transfer of title or foreclosure of project

§ 122. Transfer of title or foreclosure of project. 1. Until the termination of the tax exemption, whether by expiration or by any other cause, a redevelopment company, heretofore or hereafter organized, shall not have power to sell the real property constituting the project or any portion or portions thereof without the consent of the local legislative body. 2. If an action be brought to foreclose a mortgage or tax lien upon a redevelopment project, heretofore or hereafter authorized pursuant to this article, and the real property constituting the project shall be acquired at the foreclosure sale or from the mortgagee or lienor that had acquired the property of such sale, or by a conveyance in lieu of such sale, by a redevelopment company organized pursuant to this article, or by the federal government or an instrumentality thereof, or by a corporation which is, or by agreement has become subject to the supervision of the superintendent of financial services, such successor in interest shall acquire such project subject to all provisions of the contract regulating such project and shall be entitled to all of the benefits contained in such contract. In all other cases of sale at foreclosure or forced sale, the real property constituting the project or any portion or portions thereof shall be sold free of all restrictions, except such covenants running with the land as may be contained in the contract regulating the project, or in the deed, if any, given by the municipality to the redevelopment company affecting all or any portion of the real property upon which the project is situated, and the tax exemption, if any, theretofore granted to such project pursuant to such contract shall immediately terminate.