New York § 504 - 504Re-entry of lands sold or leased

§ 504. 504Re-entry of lands sold or leased

§ 504. Re-entry of lands sold or leased. 1. After the expiration of one year from the sale or lease of real property by the municipality to a housing company, the municipality shall have the right of re-entry in the manner hereinafter provided. Such right of re-entry may, where the property has been sold, be exercised at any time prior to twenty years after such sale, or where the property has been leased, at any time prior to the termination of the lease. The local legislative body may by resolution determine to re-enter the real property of any housing company which has purchased or leased property from the municipality. 2. A certified copy of such resolution shall be filed in the office of the county clerk or register in which the deed or lease of such property is recorded, and shall be served upon the housing company and also upon all obligees, mortgagees or holders of liens upon the real property or upon any interest therein. Upon the filing of such resolution all indebtedness of the housing company shall become immediately due and payable. 3. The municipality shall, within ninety days after the filing of the resolution to re-enter, or as soon thereafter as may be feasible, pay to the company a sum which, together with the assets of such company, shall be sufficient to discharge all the indebtedness of the company, pay the reasonable expenses of liquidation and dissolution and return to the holders of stock and debentures then outstanding, the par value thereof plus interest at the rate of six per centum per annum and any accrued and unpaid dividends or interest on such outstanding stock and debentures. 4. Upon the making of such payment the housing company shall deliver to the municipality proper instruments evidencing the cancellation of the indebtedness and the surrender of the rights of the company and thereupon the repossession by the municipality shall be complete. 5. In the event of a foreclosure of a mortgage or other lien held by any other person, bodies, institutions, associations, or corporations specified in section eighty-one the right of re-entry by the municipality shall terminate upon the entry of a judgment of foreclosure and sale.