Within the context of a foreclosure case, the plaintiff-mortgagee 1240 E* G* H* LLC sought the appointment of a receiver for a mortgaged property that had gone into default.
That request relied on a provision in the mortgage (Section 29), which—echoing Real Property Law § 254(10)—stipulated automatic entitlement to a receiver in the event of a default. However, the Bronx County Supreme Court denied that motion, reasoning that no "irreparable harm" had been demonstrated.
On appeal, the Appellate Division, First Department, reversed, noting that when a mortgage agreement includes language expressly allowing for the appointment of a receiver upon default, no additional burden—such as proof of irreparable harm—was required to be shown.
Just goes to show you, when it comes to real estate law, your clause is your castle.
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DECISION