Ex Parte Appointment Of A Receiver Confirmed

The New York County Supreme Court recently held that in the event of foreclosure, a receiver can be appointed, regardless of necessity, when the parties have contracted for such appointment.

24 West 57 APF LLC ("Defendant") refinanced outstanding debt by obtaining a mortgage of $60 million dollars from Wells Fargo ("Plaintiff"), secured by the property located at 24/26 W 57^th Street, New York, NY. The parties signed the loan documents in 2019, and specifically a mortgage and security agreement (the "Agreement") on September 27, 2019. After multiple extensions, the loan matured on August 1, 2023. Defendant failed to repay the loan in full on the maturity date. Thus, Plaintiff declared an event of default on August 3, 2023. On January 25, 2024, Plaintiff filed a complaint with the New York County Supreme Court to foreclose on the property and appoint a receiver.¹