N.Y. Real Property Law 129 – No deposit agreement shall be valid or binding which does not set forth the following provisions for the protection of the bondholders: (…
§ 129. No deposit agreement shall be valid or binding which does not set forth the following provisions for the protection of the bondholders:
Terms Used In N.Y. Real Property Law 129
- Bondholder: shall mean and include any person, firm, association or corporation owning or holding a mortgage investment. See N.Y. Real Property Law 125
- Committee: shall mean and include a person or group of persons, however known or designated, appointed by agreement, assignment, proxy, consent, authorization, power of attorney, or other similar instrument to act as an agency to receive and hold mortgage investments deposited by bondholders and to administer or do any act in respect to the same for the bondholders. See N.Y. Real Property Law 125
- Deposit agreement: shall include any agreement, assignment, proxy, consent, authorization, power of attorney or other similar instrument whereby a mortgage investment is deposited with or assigned to a committee. See N.Y. Real Property Law 125
- Depositary: shall mean and include any person, firm, association or corporation designated in any trust indenture, deed of trust, or deposit agreement as the custodian or depositary of mortgage investments. See N.Y. Real Property Law 125
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
(a) That the fees of the members of the committee, the assignee or the other person or persons to whom the deposit agreement was given, as the case may be, shall be reasonable and subject to the approval of the court.
(b) That the deposit agreement may not be amended without the approval of the court.
(c) That the mortgage investments deposited thereunder may not be sold, pledged or otherwise disposed of without the unanimous consent of the depositing bondholders or, in lieu thereof, the approval of the court.
(d) No deposit agreement shall be valid or binding or confer any rights whatever upon any member of a committee, assignee or other person to whom the agreement was given, who has any financial interest directly or indirectly in the depositary named or to be named by such committee, assignee or other person, and no person shall act for a bondholder or a deposit agreement who has such an interest.