§ 58-07 Collection of Unpaid Program Charges.
RCNY § 58-07
a. If a Program Charge is not paid when due, such Program Charge shall constitute a PACE Charge Lien on the subject property subject to the provisions of Chapter 3 and Chapter 4 of Title 11 of the Administrative Code and other related provisions of the Charter and Administrative Code, provided however that such PACE Charge Lien shall not be eligible to be repaid pursuant to an installment agreement, including an installment agreement as described in §§ 11-322 and 11-322.1 of the Administrative Code and in 19 RCNY Chapter 40. b. A PACE Charge Lien shall be eligible to be sold or transferred pursuant to § 11-319 only when a Tax Lien is also eligible to be sold pursuant to such section. c. Any PACE Charge Lien sold or transferred to the Trust in a tax lien sale pursuant to § 11-319 of the Administrative Code shall be recorded as such. d. A PACE Charge Lien shall have priority over all other liens and encumbrances on the subject property except for the lien of City Charges. e. The Lender is the owner of a PACE Charge Lien. Notwithstanding any provision of law, the Lender or subsequent holder of a PACE Charge Lien may enforce such PACE Charge Lien pursuant to all applicable provisions of law, including article 13 of the New York State Real Property Actions and Proceedings Law. f. A PACE Charge Lien shall be subject to all other terms and conditions set forth in the Program Guidelines and Program Documents. The collection and remittance of the proceeds resulting from any PACE Charge Lien sold or transferred to the Trust shall be subject to the provisions of the Master Transfer and Remittance Agreement. g. Notwithstanding any rule to the contrary, a Loan may not be accelerated, including upon the occurrence of an event of default or any other event. Upon transfer of the Borrower’s freehold interest or leasehold interest in the subject real property, the transferee of such interest is obligated to continue making payments in accordance with the Program Financing Agreement until the Loan is repaid in full. (Added City Record 3/22/2021, eff. 4/21/2021; amended City Record 10/5/2023, eff. 11/4/2023)
