New York Consolidated Laws, Real Property Law - RPP § 119. Purchase by mortgage trustee

Any banking corporation, including corporations organized under the banking law and also national banking associations authorized to act as trustees within this state, which shall act as trustee, depository or in other representative or fiduciary capacity in respect to any mortgage upon real property within this state or upon some interest therein or in respect to any indenture relating to such real property against which bonds or certificates of parts or of shares have been issued to the public, may acquire such real property in any foreclosure action now or hereafter pending; and in lieu of paying cash therefor, may make settlement for the purchase price by crediting upon the bond, mortgage or other obligation held by it, the net proceeds of sale after deducting therefrom the expenses of the sale and the costs of the action and any other sums which such trustee is authorized to deduct under the mortgage, deed of trust or indenture. The officer making such foreclosure sale shall accept such settlement without requiring the production of the bonds, notes, certificates of sharing, certificates of participation, or other security evidencing the pro rata interest of the holders thereof in the mortgage or indenture being foreclosed; and, without such production, there shall be deemed credited thereon the pro rata share of the net proceeds of sale ascertained and established as aforesaid.