N.Y. Real Property Law 127 – Restrictions on trustees
§ 127. Restrictions on trustees. 1. No trustee shall accept a trust or act as trustee under a trust mortgage affecting any property in which he or any of the officers or directors of the trustee shall have, directly or indirectly, any financial interest.
Terms Used In N.Y. Real Property Law 127
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Mortgagor: The person who pledges property to a creditor as collateral for a loan and who receives the money.
- Property: shall mean and include all of the real property or any incidental personal property constituting the underlying security for mortgage investments. See N.Y. Real Property Law 125
- Trustee: A person or institution holding and administering property in trust.
- Trustee: shall mean and include any person, firm, association or corporation named, appointed or designated as such in any deed of trust, trust indenture or other similar instrument or any successor of such trustee. See N.Y. Real Property Law 125
2. No trustee nor any officer or director of a trustee, nor any employee of any company which is a subsidiary of, controlled by or affiliated with the trustee shall, either directly or indirectly, act as insurance broker or agent in connection with the placing or writing of any insurance of any kind on any property affected or covered by a mortgage held by such trustee under a trust indenture, deed of trust, or other similar instrument, nor shall such trustee be an officer, director, partner or employee of or otherwise connected with or have any financial interest in, directly or indirectly, in any firm, agency, business, association or corporation that shall act as broker or agent in connection with the placing or writing of such insurance; nor shall any trustee or any officer, director or employee of the trustee be an officer, director, partner or an employee of or have any financial interest in any firm, agency, association or corporation engaged by such trustee as his or its representative or agent in the management or supervision of, or the collection of rents and income from any property affected or covered by the mortgage held by the trustee under a trust indenture, deed of trust, or other similar instrument.
3. No trustee shall accept any trust or act as trustee under any other trust indenture covering or affecting the same property.
4. No owner or mortgagor of any property covered by a trust indenture, deed of trust, or other similar instrument and no officer, director, stockholder or employee of such owner or mortgagor shall accept a trust or act as trustee with respect to such property.
5. The provisions of this section shall only apply to trust indentures or mortgages hereafter entered into.