Section 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.