N.Y. UDG Law § 13

§ 13. Contracts of guarantee; waivers. (a) The fund shall arrange by\ncontract with the lending institution or the borrower or both to\nsafeguard the interest of the fund in the event of default by the\nborrower, including, at the discretion of the fund, provision for notice\nto the fund of default by the borrower, for foreclosure or other\nrealization upon any security for the loan, for the time and conditions\nfor payment to the lending institution by the fund of the amount of any\nloss to the lending institution guaranteed by the fund, and for the\ndisposition of the proceeds realized from any security for the loan\nguaranteed. When it appears desirable for a temporary period upon\ndefault or threatened default by the borrower, the fund may itself make\npayments of installments of principal or interest or both, to the\nlending institution, and of taxes and insurance, which payments shall be\nrepaid, under such conditions as the fund may prescribe, and the fund\nmay also agree to revised terms of financing when such appear prudent.\n (b) Upon request of the lending institution, the fund may at any time,\nunder such equitable terms and conditions as it may prescribe, consent\nto the release of the borrower from his liability under the loan or\nconsent to the release of parts of any secured property from the lien of\nthe lending institution.\n