N.Y. LFN Law § 154.00

§ 154.00 Disposition of proceeds resulting from the satisfaction of\ncertain mortgages. a. Notwithstanding any general, special or local law\nto the contrary, upon the modification or satisfaction by the city of\nNew York or the New York city housing development corporation, pursuant\nto section twenty-three-a, twenty-three-b or subdivision twenty-two-a of\nsection six hundred fifty-four of the private housing finance law, of a\nmortgage loan made to a housing company, the entire proceeds resulting\nfrom such modification or satisfaction (not including any premium or\ndifferential referred to in section twenty-three-a or subdivision\ntwenty-two-a of section six hundred fifty-four of the private housing\nfinance law), less any fees, costs, expenses and other amounts paid or\nincurred by such city or corporation, shall be deposited in a reserve\nfund established for the purpose of retiring outstanding notes issued by\nsuch city and the proceeds therein shall be expended only for the\npayment of all or part of the said outstanding indebtedness.\nNotwithstanding any general, special or local law to the contrary, if\nthe moneys in such fund shall exceed the sum of all principal of or\ninterest on such indebtedness or if, when all such outstanding notes\nhave been retired, any moneys remain unexpended in the reserve fund,\nsuch excess moneys may be used for any lawful municipal purpose.\n b. As used in this section:\n 1. The term "fees, costs, expenses and other amounts" shall mean legal\nand other fees, costs, expenses and amounts described in subdivision\nfour-b of section twenty-three-a or subdivision twenty-two-a of section\nsix hundred fifty-four of the private housing finance law;\n 2. The term "housing company" shall mean a housing company organized\npursuant to article two of the private housing finance law; and\n 3. The term "outstanding notes" shall mean revenue anticipation notes,\ntax anticipation notes and bond anticipation notes of the city of New\nYork issued prior to November fourteenth, nineteen hundred seventy-five\nand presented for payment prior to January first, nineteen hundred\nseventy-eight, other than (i) notes paid by such city prior to the\neffective date of this paragraph, (ii) notes held by the municipal\nassistance corporation for the city of New York (including but not\nlimited to notes exchanged for bonds of such corporation), and (iii)\nnotes with respect to which the holders thereof executed agreements to\npostpone or withhold demand for payment or enforcement of such notes.\n