National Housing Cooperatives Case Law Survey (1/1/2012-Present)

by admin on August 7, 2013

Emigrant Mortgage Co., Inc. v. Greenberg, 34 Misc. 3d 1236(A), 950 N.Y.S.2d 608 (Dist. Ct. 2012) (unreported)

Petitioner, Emigrant Mortgage Company, Inc., commenced a holdover proceeding against Respondent Louise Greenberg to recover possession of a cooperative premises located in Great Neck, NY. Petitioner loaned money to Respondent under a Security Agreement which enabled Respondent to purchase co-op stock for occupancy of her unit. The co-op stock was pledged as collateral. Respondent defaulted under the Security Agreement and Petitioner became the owner of Respondent’s co-op stock through a sale at a public auction.

Through its purchase at the auction, Petitioner acquired all of the borrower’s “right, title and interest” in Respondent’s co-op stock. It thereby acquired “all right, title and interest” to her proprietary lease for her co-op unit. The Court confirmed that a sale of co-op stock pledged as collateral to the secured party transfers all of the owner’s rights in the cooperative.

Petitioner initially brought the proceeding to evict Respondent pursuant to RPAPL § 713(5), which allows an eviction where: “The property has been sold in foreclosure and either the deed delivered pursuant to such sale, or a copy of such deed, certified as provided in the civil practice law and rules, has been exhibited to him.”

Read the rest at:
http://nationalcooperativelawcenter.com/survey-of-housing-cooperative-law-cases/national-housing-cooperatives-case-law-survey-112012-present/

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