State Codes and Statutes

Statutes > New-york > Lie > Article-2 > 29

§  29. Subordination of liens to subsequent mortgage. In case an owner  of real property upon which an improvement is being or  has  been  made,  desires  to obtain a loan by executing and delivering a bond or bonds or  note or notes secured by a mortgage upon such real property, or any part  thereof, and in case lienors having mechanics' liens against  such  real  property, or any part thereof, notices of which have been filed prior to  the  recording  of  such  mortgage,  and  which said liens have not been  discharged as in this article provided, shall, to the extent of at least  fifty-five per centum of the aggregate amount for which notices of  such  liens  have  been  so filed, by an instrument or instruments in writing,  duly acknowledged, designate  and  authorize  one  or  more  persons  to  consent  to the execution and delivery of such bond and mortgage or note  and mortgage, and in case the consent in writing, duly acknowledged,  of  such  person  or  persons to the execution and delivery of such bond and  bonds and mortgage or note and notes and mortgage shall be filed in  the  office  of the clerk of the county where such real property is situated,  together with such instrument or instruments of  designation,  then  all  mechanics'  liens  for  labor performed and materials furnished prior to  the recording  of  such  mortgage  whether  notices  thereof  have  been  theretofore or are thereafter filed, shall be subordinate to the lien of  such  bond  or  bonds  and mortgage or note or notes and mortgage to the  extent of the full amount which shall be  advanced  thereunder  provided  such  mortgage  contains the covenant prescribed in subdivision three of  section thirteen of this chapter. In case  such  person  or  persons  so  designated and authorized shall so consent to the execution and delivery  of  such  bond and mortgage or note and mortgage but on condition that a  sum of money be deposited with the clerk of such county, and such sum is  so deposited, the county clerk, upon such payment, shall forthwith enter  upon the lien docket, indexed with the name  of  the  owner,  the  facts  relating  to such payment. A deposit of money made as prescribed in this  section shall be repaid to such owner or his assignee upon the discharge  or release of all mechanics' liens, judgments  and  attachments  against  the  property.  All  deposits  of money made as provided in this section  shall be considered as paid into court  and  shall  be  subject  to  the  provisions  of  law  relative to the payment of money into court and the  surrender of such money by order of the court. The court  shall  in  any  action  brought to foreclose any of such liens, or in any action brought  to recover such deposit or any part thereof, direct the payment of  such  sum  so  deposited  to the persons whose mechanics' liens, judgments, or  claims secured by attachment shall have been established  on  the  trial  and  the  amount  so  paid shall be credited upon such mechanics' liens,  judgments and claims. Upon such filing of such consent, as  hereinbefore  provided,  the lien of all judgments and attachments affecting such real  property and all claims and liens acquired in any proceedings upon  such  judgments  shall  be  subordinate  in  like manner and to like extent as  hereinbefore  in  this  section  provided  for  the   subordination   of  mechanics' liens, and any attachment issued or judgment recovered upon a  claim, which, in whole or in part, is not for materials furnished, labor  performed  or moneys advanced for the improvement of such property shall  be subordinate to all  mechanics'  liens  thereon,  and  shall  also  be  subordinate  to all judgments recovered upon and attachments issued upon  claims for materials furnished, labor performed or moneys  advanced  for  the  improvement  of  such real property. Any lienor having a mechanic's  lien against real property may subordinate such lien to  any  subsequent  mortgage  thereon  by  a certificate duly acknowledged or proved stating  that such lien is subordinated, which certificate shall be filed in  the  office  where the notice of lien is filed. Upon filing such certificate,  the county clerk in the office where the same is filed  shall  note  thefact  of  such  filing  in  the  "lien  docket"  in  the  column  headed  "proceedings had," opposite the docket of such lien.

State Codes and Statutes

Statutes > New-york > Lie > Article-2 > 29

§  29. Subordination of liens to subsequent mortgage. In case an owner  of real property upon which an improvement is being or  has  been  made,  desires  to obtain a loan by executing and delivering a bond or bonds or  note or notes secured by a mortgage upon such real property, or any part  thereof, and in case lienors having mechanics' liens against  such  real  property, or any part thereof, notices of which have been filed prior to  the  recording  of  such  mortgage,  and  which said liens have not been  discharged as in this article provided, shall, to the extent of at least  fifty-five per centum of the aggregate amount for which notices of  such  liens  have  been  so filed, by an instrument or instruments in writing,  duly acknowledged, designate  and  authorize  one  or  more  persons  to  consent  to the execution and delivery of such bond and mortgage or note  and mortgage, and in case the consent in writing, duly acknowledged,  of  such  person  or  persons to the execution and delivery of such bond and  bonds and mortgage or note and notes and mortgage shall be filed in  the  office  of the clerk of the county where such real property is situated,  together with such instrument or instruments of  designation,  then  all  mechanics'  liens  for  labor performed and materials furnished prior to  the recording  of  such  mortgage  whether  notices  thereof  have  been  theretofore or are thereafter filed, shall be subordinate to the lien of  such  bond  or  bonds  and mortgage or note or notes and mortgage to the  extent of the full amount which shall be  advanced  thereunder  provided  such  mortgage  contains the covenant prescribed in subdivision three of  section thirteen of this chapter. In case  such  person  or  persons  so  designated and authorized shall so consent to the execution and delivery  of  such  bond and mortgage or note and mortgage but on condition that a  sum of money be deposited with the clerk of such county, and such sum is  so deposited, the county clerk, upon such payment, shall forthwith enter  upon the lien docket, indexed with the name  of  the  owner,  the  facts  relating  to such payment. A deposit of money made as prescribed in this  section shall be repaid to such owner or his assignee upon the discharge  or release of all mechanics' liens, judgments  and  attachments  against  the  property.  All  deposits  of money made as provided in this section  shall be considered as paid into court  and  shall  be  subject  to  the  provisions  of  law  relative to the payment of money into court and the  surrender of such money by order of the court. The court  shall  in  any  action  brought to foreclose any of such liens, or in any action brought  to recover such deposit or any part thereof, direct the payment of  such  sum  so  deposited  to the persons whose mechanics' liens, judgments, or  claims secured by attachment shall have been established  on  the  trial  and  the  amount  so  paid shall be credited upon such mechanics' liens,  judgments and claims. Upon such filing of such consent, as  hereinbefore  provided,  the lien of all judgments and attachments affecting such real  property and all claims and liens acquired in any proceedings upon  such  judgments  shall  be  subordinate  in  like manner and to like extent as  hereinbefore  in  this  section  provided  for  the   subordination   of  mechanics' liens, and any attachment issued or judgment recovered upon a  claim, which, in whole or in part, is not for materials furnished, labor  performed  or moneys advanced for the improvement of such property shall  be subordinate to all  mechanics'  liens  thereon,  and  shall  also  be  subordinate  to all judgments recovered upon and attachments issued upon  claims for materials furnished, labor performed or moneys  advanced  for  the  improvement  of  such real property. Any lienor having a mechanic's  lien against real property may subordinate such lien to  any  subsequent  mortgage  thereon  by  a certificate duly acknowledged or proved stating  that such lien is subordinated, which certificate shall be filed in  the  office  where the notice of lien is filed. Upon filing such certificate,  the county clerk in the office where the same is filed  shall  note  thefact  of  such  filing  in  the  "lien  docket"  in  the  column  headed  "proceedings had," opposite the docket of such lien.

State Codes and Statutes

State Codes and Statutes

Statutes > New-york > Lie > Article-2 > 29

§  29. Subordination of liens to subsequent mortgage. In case an owner  of real property upon which an improvement is being or  has  been  made,  desires  to obtain a loan by executing and delivering a bond or bonds or  note or notes secured by a mortgage upon such real property, or any part  thereof, and in case lienors having mechanics' liens against  such  real  property, or any part thereof, notices of which have been filed prior to  the  recording  of  such  mortgage,  and  which said liens have not been  discharged as in this article provided, shall, to the extent of at least  fifty-five per centum of the aggregate amount for which notices of  such  liens  have  been  so filed, by an instrument or instruments in writing,  duly acknowledged, designate  and  authorize  one  or  more  persons  to  consent  to the execution and delivery of such bond and mortgage or note  and mortgage, and in case the consent in writing, duly acknowledged,  of  such  person  or  persons to the execution and delivery of such bond and  bonds and mortgage or note and notes and mortgage shall be filed in  the  office  of the clerk of the county where such real property is situated,  together with such instrument or instruments of  designation,  then  all  mechanics'  liens  for  labor performed and materials furnished prior to  the recording  of  such  mortgage  whether  notices  thereof  have  been  theretofore or are thereafter filed, shall be subordinate to the lien of  such  bond  or  bonds  and mortgage or note or notes and mortgage to the  extent of the full amount which shall be  advanced  thereunder  provided  such  mortgage  contains the covenant prescribed in subdivision three of  section thirteen of this chapter. In case  such  person  or  persons  so  designated and authorized shall so consent to the execution and delivery  of  such  bond and mortgage or note and mortgage but on condition that a  sum of money be deposited with the clerk of such county, and such sum is  so deposited, the county clerk, upon such payment, shall forthwith enter  upon the lien docket, indexed with the name  of  the  owner,  the  facts  relating  to such payment. A deposit of money made as prescribed in this  section shall be repaid to such owner or his assignee upon the discharge  or release of all mechanics' liens, judgments  and  attachments  against  the  property.  All  deposits  of money made as provided in this section  shall be considered as paid into court  and  shall  be  subject  to  the  provisions  of  law  relative to the payment of money into court and the  surrender of such money by order of the court. The court  shall  in  any  action  brought to foreclose any of such liens, or in any action brought  to recover such deposit or any part thereof, direct the payment of  such  sum  so  deposited  to the persons whose mechanics' liens, judgments, or  claims secured by attachment shall have been established  on  the  trial  and  the  amount  so  paid shall be credited upon such mechanics' liens,  judgments and claims. Upon such filing of such consent, as  hereinbefore  provided,  the lien of all judgments and attachments affecting such real  property and all claims and liens acquired in any proceedings upon  such  judgments  shall  be  subordinate  in  like manner and to like extent as  hereinbefore  in  this  section  provided  for  the   subordination   of  mechanics' liens, and any attachment issued or judgment recovered upon a  claim, which, in whole or in part, is not for materials furnished, labor  performed  or moneys advanced for the improvement of such property shall  be subordinate to all  mechanics'  liens  thereon,  and  shall  also  be  subordinate  to all judgments recovered upon and attachments issued upon  claims for materials furnished, labor performed or moneys  advanced  for  the  improvement  of  such real property. Any lienor having a mechanic's  lien against real property may subordinate such lien to  any  subsequent  mortgage  thereon  by  a certificate duly acknowledged or proved stating  that such lien is subordinated, which certificate shall be filed in  the  office  where the notice of lien is filed. Upon filing such certificate,  the county clerk in the office where the same is filed  shall  note  thefact  of  such  filing  in  the  "lien  docket"  in  the  column  headed  "proceedings had," opposite the docket of such lien.