N.Y. RPP Law § 126

§ 126. Trust indentures. No trustee shall hereafter accept a trust\nunder any trust indenture or mortgage within the contemplation of this\narticle or act as trustee thereunder unless the instrument creating the\ntrust shall contain the following provisions, among others, which confer\nthe following powers and impose the following duties upon the trustees:\n 1. In the case of an event of default (as such term is defined in such\ninstrument), to exercise such of the rights and powers vested in the\ntrustee by such instrument, and to use the same degree of care and skill\nin their exercise as a prudent man would exercise or use under the\ncircumstances in the conduct of his own affairs.\n 2. In considering what actions are or are not prudent in the\ncircumstances, to consider whether or not:\n (a) to take such action as may be necessary or proper to sequester the\nrents and income of the property;\n (b) to procure from the owner of the property an assignment of rents\nand/or a consent to enter into possession of the property and to collect\nthe rents therefrom;\n (c) to apply to the court for the appointment of a receiver of the\nrents and income of the property;\n (d) to declare due and payable forthwith any principal amount\nremaining due and unpaid and commence an action of foreclosure;\n (e) to apply the moneys received as rents and income from the property\nas well as moneys received by the trustee from any receiver appointed\nfor such property in his discretion, to the maintenance and operation of\nsuch property, the payment of taxes, water rents and assessments levied\nthereon and any arrears thereof, to the payment of underlying liens, and\nto the creation and maintenance of a reserve or sinking fund.\n 3. If the trustee can obtain the information without unreasonable\neffort or expense, to render annually to bondholders, after the\noccurrence of a default, unless such default be previously cured, a\nsummarized statement of income and expenditures in connection with the\nproperty.\n 4. To distribute the proceeds of any sale or other disposition of the\nproperty ratably among the bondholders, subject to applicable mandatory\nprovisions of law.\n 5. To permit the obligor or other person in possession or control of\nthe property, or his successors in interest, to be free to select the\ninsurance broker or agent through whom any insurance of any kind is to\nbe placed or written on any property affected or covered by a mortgage\nheld by such trustee.\n