NEW YORK - Loeb & Loeb LLP secured an important victory on behalf of East West Bank today when the New York Supreme Court granted the bank’s application to appoint a receiver of rents on a 12-story Manhattan office building following the borrowers’ multiple defaults under a $35 million mortgage encumbering the building. The defendant’s motion to dismiss the complaint was denied.
East West Bank brought the action for foreclosure on the building, located at 130 William Street, after the defendants failed to pay the monthly mortgage payments starting in July 2011 (now exceeding $700,000), as well as $1.3 million in delinquent real estate taxes and two mechanic’s liens filed against the property.
The Court cited Section V of the mortgage, which clearly states that the bank is entitled to the appointment of a receiver in the event of a default, rejecting the defendants’ argument that a receiver should not be appointed here, either because the value of the building is more than adequate to secure the mortgage debt, or because it would be inequitable or would otherwise interfere with defendants’ efforts to lease up the building.
East West Bank was represented by Helen Gavaris and Robert J. Catalano in the New York office of Loeb & Loeb.