Section 1419. Deficiency judgment

1.  Unless  otherwise agreed by the
  mortgagor and the mortgagee in the mortgage,  a  person  who  or  entity
  which  owes  payment of an obligation secured by the mortgage foreclosed
  under this article is liable for the whole residue, or so  much  thereof
  as the court may determine, of the debt remaining unsatisfied, after the
  sale  of the mortgaged property and the application of the proceeds, the
  amount of the debt remaining unsatisfied to be determined by  the  court
  as herein provided.
    2.  Not  later than ninety days after the delivery to the purchaser of
  the power of sale deed to the mortgaged property, the person to whom  or
  entity  to  which  such  residue  shall be owing may make an application
  under the index number assigned  the  non-judicial  proceeding,  in  the
  supreme court for the county in which the mortgaged property is located,
  or  in  a  county  in  which  the  sale has taken place for a deficiency
  judgment against the persons or entities liable therefor upon notice  to
  such  persons  or entities. Such notice shall be served personally or in
  such other manner as the court may direct. Upon  such  application,  the
  court,  whether or not the person or entity claimed to be liable for the
  residue appears, shall determine, upon reasonable appraisal  by  a  real
  estate  appraiser  licensed in the state of New York, or otherwise as it
  shall direct, the fair and reasonable  market  value  of  the  mortgaged
  property  as of the date the mortgaged property was bid on at auction or
  such nearest earlier date as there shall  have  been  any  market  value
  thereof  and  shall  make  an  order directing the entry of a deficiency
  judgment against the person or entity liable therefor.  Such  deficiency
  judgment  shall  be  for  an amount equal to the aggregate amount of the
  indebtedness  due  to  the  mortgagee,  together  with  all  other  sums
  recoverable  under section fourteen hundred seventeen of this article as
  such shall be set forth in the report of sale  pursuant  to  subdivision
  three  of  section  fourteen  hundred  fourteen of this article less the
  higher of: (a) market value of the mortgaged property as  determined  by
  the court or (b) the sales price of the mortgaged property at the public
  sale.
    3. If no application for a deficiency judgment shall be made as herein
  prescribed,  the  proceeds  of the sale regardless of the amount thereof
  shall be deemed to be in full satisfaction of the mortgage debt, and  no
  right to recover any deficiency in any action or proceeding shall exist.
    * NB Repealed July 1, 2009