N.Y. SOS Law § 410-L

§ 410-l. Foreclosures and judgments. 1. In any foreclosure action\nthe commissioner shall be made a party defendant. He shall take all\nsteps necessary to protect the interests of the public therein and no\ncosts shall be awarded against him. Foreclosures shall not be decreed\nunless the court to which application is made shall be satisfied that\nthe interests of the lienholder or holders cannot be adequately assured\nexcept by the sale of the property. In any such proceeding, the court\nshall be authorized to appoint the commissioner as receiver of the\nproperty, or to grant such other and further relief as may be reasonable\nand proper.\n 2. Notwithstanding the foregoing provisions of this section, wherever\nit shall appear that the agency shall have loaned on a mortgage which is\na first lien upon any such property, such agency shall have all the\nremedies available to a mortgagee under the laws of the state of New\nYork, free from any restrictions contained in this section, except that\nthe commissioner shall be made a party defendant and that the\ncommissioner shall take all steps necessary to protect the interests of\nthe public and no costs shall be awarded against him.\n 3. In the event of a judgment against an eligible borrower in any\naction not pertaining to the collection of a mortgage indebtedness,\nthere shall be no sale of any of the real property of such eligible\nborrower except upon sixty days' written notice to the commissioner and\nthe agency. Upon receipt of such notice the commissioner and the agency\nshall take such steps as in their judgment may be necessary to protect\nthe rights of all parties.\n