N.Y. Urban development guarantee fund of New York § 13 — Contracts of guarantee; waivers

§ 13. Contracts of guarantee; waivers. (a) The fund shall arrange by contract with the lending institution or the borrower or both to safeguard the interest of the fund in the event of default by the borrower, including, at the discretion of the fund, provision for notice to the fund of default by the borrower, for foreclosure or other realization upon any security for the loan, for the time and conditions for payment to the lending institution by the fund of the amount of any loss to the lending institution guaranteed by the fund, and for the disposition of the proceeds realized from any security for the loan guaranteed. When it appears desirable for a temporary period upon default or threatened default by the borrower, the fund may itself make payments of installments of principal or interest or both, to the lending institution, and of taxes and insurance, which payments shall be repaid, under such conditions as the fund may prescribe, and the fund may also agree to revised terms of financing when such appear prudent.

(b) Upon request of the lending institution, the fund may at any time, under such equitable terms and conditions as it may prescribe, consent to the release of the borrower from his liability under the loan or consent to the release of parts of any secured property from the lien of the lending institution.