Section 2879. Foreclosures and judgments

1. In any foreclosure action the
  commissioner shall be made a party defendant. He shall  take  all  steps
  necessary  to  protect  the interests of the public therein and no costs
  shall be awarded against him. Foreclosures shall not be  decreed  unless
  the  court  to  which  application  is  made shall be satisfied that the
  interests of the lienholder or  holders  cannot  be  adequately  assured
  except  by  the  sale of the property. In any such proceeding, the court
  shall be authorized to appoint  the  commissioner  as  receiver  of  the
  property, or to grant such other and further relief as may be reasonable
  and proper.
    2.  Notwithstanding the foregoing provisions of this section, wherever
  it shall appear that the agency shall have loaned on a mortgage which is
  a lien upon any such property, such agency shall have all  the  remedies
  available  to  a mortgagee under the laws of the state of New York, free
  from any  restrictions  contained  in  this  section,  except  that  the
  commissioner  shall  be made a party defendant and that the commissioner
  shall take all steps necessary to protect the interests  of  the  public
  and no costs shall be awarded against him.
    3.  In  the  event  of  a judgment against an eligible borrower in any
  action not pertaining to the  collection  of  a  mortgage  indebtedness,
  there  shall  be  no  sale  of any of the real property of such eligible
  borrower except upon sixty days' written notice to the commissioner  and
  the  agency. Upon receipt of such notice the commissioner and the agency
  shall take such steps as in its judgment may be necessary to protect the
  rights of all parties.