ARTICLE 16

JUDICIAL AUTHORIZATION OF SALE, LEASE, MORTGAGE,
ACQUISITION, EXCHANGE OR VOLUNTARY PARTITION
Section 1601. Application by trustee for court authorization to
mortgage, to lease, to sell, to acquire or to exchange
real property or for confirmation of a lease of real
property.
1602. Application by owner of present or future interest for
court authorization to mortgage, to lease or to sell
real property.
1603. Court to which application is to be made.
1604. When application shall be granted.
1605. Contents of petition.
1606. Notice of application.
1607. Service of notice upon presumptive members of class.
1608. Guardians ad litem.
1609. Final order upon the application.
1610. Final order authorizing acquisition or exchange of land or
confirming lease; execution and binding force.
1611. Final order; appointment of referee.
1612. Report of agreement for confirmation.
1613. Order of confirmation; contents and subsequent procedures.
1614. Binding force of mortgage, sale or lease duly made with
judicial approval.
1615. Date of creation of affected interests.
1616. Application to compensation arising out of appropriation
of real property by the state.
1641. Executors`, fiduciaries` and trustees` conveyances to
certain corporations in exchange for certain stocks and
bonds authorized and regulated.
1651. Proceedings for voluntary partition of infant`s,
incompetent`s or conservatee`s real property.

S 1601. Application by trustee for court authorization to mortgage, to
lease, to sell, to acquire or to exchange real property or for
confirmation of a lease of real property. 1. When the assets of a trust
include an interest in real property, the trustee may apply to the court
designated in section 1603, and in the case of a testamentary trust, to
the court having jurisdiction thereof, for an order authorizing such
trustee to mortgage, to lease or to sell such real property or a part
thereof; or to acquire land adjacent to such real property or to
exchange a portion of such real property for lands adjacent to such real
property when either such acquisition or exchange would tend to improve
the boundary lines of such real property; or to confirm a lease for a
term longer than ten years made by a trustee of such real property
without obtaining prior authorization by a court.
2. An application for an order authorizing a trustee to acquire land
adjacent to real property in which the trustee has an interest, or as to
which he has a power of sale, may also be made when such real property
and the adjacent land to be acquired have the same building or
physically connected buildings thereon.

S 1602. Application by owner of present or future interest for court
authorization to mortgage, to lease or to sell real property. When the
ownership of real property is divided into one or more possessory
interests and one or more future interests, the owner of any interest in
such real property or in the proceeds to be derived therefrom on a
directed sale thereof, except the owner of a possessory estate in fee
simple absolute therein, may apply to the court designated in section
1603 for an order directing that said real property, or a part thereof,
be mortgaged, leased or sold. If any such owner is an infant or
otherwise under disability, the application can be made on behalf of
such person, by the person duly authorized by law to care for his
property interests.

S 1603. Court to which application is to be made. An application made
pursuant to the provisions of either section 1601 or section 1602 shall
be made to a term of the supreme court held within the judicial district
in which the real property, or a part thereof, is situated.

S 1604. When application shall be granted. The court to which an
application has been duly made pursuant to the provisions of either
section 1601 or section 1602 is authorized to grant such application
upon such terms as to it shall seem proper, if satisfied from the
proceedings theretofore duly had, that the act to be authorized is
expedient; or that the lease sought to be confirmed is one, the
authorization of which would be expedient. The granting of such an
application is not necessarily precluded by the fact that it is opposed
by one or more persons having interests in the affected real property;
or by the fact that the granting thereof will be in contravention of a
provision contained in the instrument creating some or all of the
interests in the affected real property.

S 1605. Contents of petition. An application made pursuant to the
provisions of either section 1601 or section 1602 shall be by duly
verified petition which must contain the following:
1. A description of the affected real property with reasonable
certainty;
2. A specification of the rights, shares and interest in such real
property, and of the names of the owners thereof, as far as the same are
known to the petitioner, together with the facts determining such
interests and each of them;
3. The special facts alleged to make the granting of the application
proper in accordance with the provisions of section 1604;
4. Any other allegation required by statute, or by rule of court.

S 1606. Notice of application. 1. The notice of an application made
pursuant to the provisions of either section 1601 or section 1602 shall
be given to each person in being who has an interest in the affected
real property, or in the proceeds to be derived therefrom upon a
directed sale thereof; or who is a beneficiary of a trust created
relative thereto; or who has a power to appoint or to dispose of an
interest therein, or in its proceeds; or who is an appointee under such
a power theretofore exercised.
2. Such notice shall be given in the manner following:
a. If such person is a competent adult within this state, by service
upon him personally of a written notice stating the time, place and
purpose of the application, at least eight days prior to the
presentation thereof;
b. In all other cases in such manner as the court which the
application is to be made shall prescribe.

S 1607. Service of notice upon presumptive members of class. When an
interest in the affected real property has been limited to a class,
service of the notice of the application upon those persons in being who
are the presumptive members of such class at the moment immediately
before the application is made shall be sufficient service as to such
interest. If no such presumptive members of the class exist, the
provisions of section 1608 apply.

S 1608. Guardians ad litem. 1. On the return day of the motion made
pursuant to the provisions of either section 1601 or section 1602 the
court shall appoint a guardian ad litem for any minor or other person
under disability who is a party to the proceeding and is not represented
by a duly acting guardian, committee or conservator.
2. On the return day of the motion made pursuant to the provisions of
either section 1601 or section 1602, if it appears that a future
interest in the affected real property has been so limited that as yet
there are neither certain nor presumptive owners thereof in being or
ascertained, the court shall appoint a guardian ad litem to represent
and to protect the possible interests of the person or persons who
eventually may become entitled to such real property, or to an interest
therein, under such limitation. The granting of an application is not
necessarily precluded by the fact that as yet no person other than the
applicant is in being, who can acquire a beneficial or possessory
interest in the affected real property.

S 1609. Final order upon the application. After taking proof of the
facts, either before the court or a referee, and hearing the parties and
fully examining into the matter, the court must make a final order upon
the application. In case the application is granted in whole or in part,
the final order shall specify the real property to be mortgaged, leased,
sold, acquired, exchanged or as to which a previously made lease is to
be confirmed, and the terms and conditions upon which the authorized
transaction is to be consummated or approved.

S 1610. Final order authorizing acquisition or exchange of land or
confirming lease; execution and binding force. When the final order
authorizes the acquisition or exchange of land, the trustee, upon whose
application the order was made, shall execute the provisions of such
order. Any acquisition or exchange of land so made or any previously
made lease which is confirmed, shall have the same binding force upon
the interests of the beneficiaries of such trust and upon the interests
of all other persons in such real property as is stated in section 1614.

S 1611. Final order; appointment of referee. When the final order
authorizes a mortgage, lease or sale upon the application of a person
who is not trustee, the court in such final order must appoint a referee
to execute the authorized transaction. When the application has been
made by a trustee, such trustee shall execute the authorized
transaction.

S 1612. Report of agreement for confirmation. Before a mortgage, lease
or sale is made pursuant to a final order described in section 1609, the
trustee or referee must enter into an agreement therefor, subject to the
approval of the court, and must report this agreement to the court under
oath.

S 1613. Order of confirmation; contents and subsequent procedures. 1.
When the agreement reported to the court pursuant to the provisions of
section 1612 appears to the court to conform in all particulars to the
final order authorizing the transaction, an order shall be made
approving and confirming the agreement and directing the trustee or
referee to execute and to deliver the mortgage, lease or deed of such
real property which is required thereby. No order of confirmation shall
be withheld on the ground that the market value of such real property
has changed between the execution of such agreement and the hearing of
the application for confirmation thereof.
2. The order of confirmation, in the discretion of the court, shall
direct the payment to each participant in the proceeding of the
reasonable disbursements made or incurred by him in the course of the
proceeding, and shall make such reasonable allowances, as to the court
seem proper, to persons who have served in the proceeding as referee,
guardian ad litem, or counsel; and shall direct the mode of payment of
all these allowances.
3. The order of confirmation shall also include such provisions as
justice may require for the application, safeguarding, management and
distribution of the fund to be derived from the ordered transaction.
The statutory provisions applicable to the safeguarding, management or
distribution of the fund produced by a sale in an action for partition
shall apply to the proceeds derived from a sale authorized by this
section, so far as this is practical.

S 1614. Binding force of mortgage, sale or lease duly made with
judicial approval. A mortgage, lease or conveyance duly executed and
delivered in accordance with an order of confirmation, made pursuant to
the provisions of section 1613, binds the interests of the applicant
therefor and of all other persons who either are parties to such
proceeding or are represented therein or are not entitled to notice
thereof under the provisions of section 1606.

S 1615. Date of creation of affected interests. The procedure
authorized by sections 1601 through 1614 shall apply equally to
interests created on or after September 1, 1937; to interests created
before that date but subsequent to the enactment of some statute,
replaced by former sections one hundred seven through one hundred
seven-m of the real property law, authorizing the like sale, mortgage,
lease or other binding of such interests by a judicially authorized
conveyance; and to all other interests, whenever created.

S 1616. Application to compensation arising out of appropriation of
real property by the state. 1. The procedure authorized by sections 1601
through 1614 as to a sale of real property, covering all created
interests as mentioned therein and qualified in section 1615, shall, so
far as practicable, apply also to an application concerning payment of
compensation arising out of any appropriation by the state of real
property or of any interest therein, for public purpose, in the same
manner that such procedure would apply, but for such appropriation, to
an application thereunder for an order directing that the real property
in question, or a part thereof, be sold.
2. For the purpose, however, of the relief sought under the provisions
of this section, all references in this and in any of the above
enumerated sections to a trustee or a trust shall be construed as
relating only to a trust estate created by an instrument other than a
will and under which the trustee has no valid power of sale over the
subject property. Where, however, a valid power of sale is given the
trustee under such instrument, he is hereby authorized to execute the
transaction in the same manner a testamentary trustee may do under
section two hundred fifty-c of the surrogate`s court act, and which
execution, including all releases given thereunder by such
nontestamentary trustee, shall in similar scope be binding and
conclusive on all persons and interests as covered thereby in said last
mentioned section.
3. In the case of any such appropriation where relief is sought under
this section, the relevant proof to be taken and the hearing and
examination to be had before final order under the provisions of section
1609 shall be as to whether the compensation offered by the state, or
any agency or department thereof, by way of a provisionally executed
agreement of adjustment or otherwise, for the total value of such
appropriated property or interest and of all legal damages caused by
such appropriation, represents the fair market value of such property or
interest and just compensation therefor and for all legal damages caused
by such appropriation, including the damages, if any, sustained by the
entry upon, use or occupation of, or injury to, said property by the
state prior to completion of appropriation. If the court is satisfied as
to the adequacy of said offer, it shall, in the final order in the
proceeding, authorize the applicant if acting as trustee, and, if not,
then a referee to be appointed thereunder to execute the authorized
transaction, to enter into or adopt any such agreement of adjustment
with, and in form submitted by, the state or any agency or department
thereof for the total compensation so offered; and on report under oath
to the court by such trustee or referee of any such agreement of
adjustment so undertaken by either of them, if it appears to the court
to conform in all particulars to the final order authorizing the
transaction, an order shall be made approving and confirming such
agreement of adjustment and directing such trustee or referee, upon
consummation thereof, in behalf of all persons in interest as to the
property affected by said appropriation, or as to the proceeds to be
derived therefrom in said transaction, who shall have become bound by
said proceeding under the provisions of section 1614 to execute and
deliver to the state and/or any agency or department thereof, a release
of all claims on the part of such persons in interest with respect to
the total compensation offered as aforementioned, together with any and
all other documents and instruments which may be required by the state
or any agency or department thereof to give full effect to such release,
and which release and attendant documents and instruments shall, upon
such execution and delivery thereof, become and remain binding and
conclusive on all of the aforesaid persons in interest.
4. Said order of confirmation shall, in the discretion of the court,
provide for payment out of said total compensation of reasonable
disbursements and of such allowances as to the court may seem proper, in
the manner and respectively to the participants and persons mentioned in
section 1613, and shall also authorize said trustee or referee to
receive the net proceeds therefrom after such payment and to apply,
safeguard, manage and distribute said remaining fund as directed in said
order of confirmation and in accordance with the relevant provisions of
section 1613.

S 1641. Executors`, fiduciaries` and trustees` conveyances to certain
corporations in exchange for certain stocks and bonds authorized and
regulated. 1. Whenever an executor, trustee, guardian of an infant,
committee of a person incompetent to manage himself or his affairs,
conservator of a person unable to care for his affairs, or other person
or persons acting in a fiduciary capacity, or a life tenant, is
authorized to sell any real property or any interest therein pursuant to
a power contained in a deed or will, or pursuant to a judgment or order
of the supreme court in an action or special proceeding pursuant to any
provision of law, or pursuant to a statutory power to sell or exchange
any real property, or any interest therein, or whenever a trustee of an
express trust is seized of a legal title to an undivided share or
interest in any real property, and the said property has been or is
about to be conveyed to a corporation formed or to be formed for such
purpose, and two-thirds in number and amount of interest of the adult
beneficiaries and also two-thirds in number and amount of interest of
the adult persons having a vested interest or estate in possession,
reversion or remainder in such real property have agreed, or desire to
agree that their interests and estates shall be exchanged for the stock
and bonds or either the stock or bonds of such corporation, then the
said executor, trustee, guardian, committee, conservator or other person
or persons acting in a fiduciary capacity, or the life tenant or
tenants, may, with the approval of the supreme court, convey such real
property or interest to such corporation in exchange for the stock or
bonds of such corporation, or a proportionate amount thereof, provided,
however, that such corporation shall be prohibited by its certificate of
incorporation from investing in any stocks, bonds or other securities
other than real property which are not under the laws of this state a
proper subject for the investment of trust funds, and provided further
that if the interest of a trust estate in any real property to be so
exchanged is an undivided part or share therein, such undivided part or
share of the trust estate may be so exchanged if it shall appear to the
court to be for the best interest of such estate.
2. The supreme court shall not grant an order permitting such an
exchange and conveyance unless it appears to the satisfaction of such
court that a written notice stating the time and place of the
application for such leave has been served upon every beneficiary and
also upon every person in being having a vested interest or estate in
possession, reversion or remainder, in such real property at least eight
days before the making thereof, if such beneficiary or other person is
an adult within the state; or if a minor, incompetent, conservatee, or
absentee, until proof of the service on such beneficiary or other person
of such notice as the court or a justice thereof prescribes.
3. The court shall appoint a guardian for any minor and for any person
unable to manage himself or his affairs who shall not be represented by
a committee or conservator duly appointed.
4. The application must be by petition duly verified, must be made by
the executor, trustee, guardian of an infant, committee, conservator, or
such other person or persons acting in a fiduciary capacity, or a life
tenant who has been so authorized to sell or exchange, or by the trustee
of an express trust seized of a legal title to an undivided share or
interest in real property; and shall set forth the reasons for such
exchange and conveyance and the nature thereof and the peculiar facts
which make it proper that the application shall be granted, but when the
interest of a trust estate in any real property is an undivided part or
share thereof, it shall be sufficient to show by such petition that the
exchange will be for the best interests of such estate. After taking
proof of the facts either before the court or a referee, and hearing the
parties and fully examining into the matter, the court must direct
judgment upon the application. In case the application is granted, the
judgment must authorize the said executor, trustee, guardian of an
infant, committee, conservator, or other person or persons acting in a
fiduciary capacity or life tenant, to make such exchange and conveyance
upon such terms and conditions as the court may therein prescribe.
5. Whenever it shall appear from the papers submitted upon the
application that there are conflicting claims in respect to the
ownership of or the right to sell and convey such real property or any
interest therein, the court may, within the demand for relief as
evidenced by the notice of application, and if all adult beneficiaries,
and also all adult persons having a vested interest or estate in
possession, reversion or remainder in such real property under such
conflicting claims consent thereto, direct that the stock and bonds or
either the stock or bonds to be given by the corporation in exchange for
such real property or interest therein shall be issued to and held by a
trust company authorized to hold moneys paid into court upon such terms
and conditions and with such powers as the court shall prescribe until
the further order of the court.

S 1651. Proceedings for voluntary partition of infant`s, incompetent`s
or conservatee`s real property. 1. Where an infant, mentally retarded
person, mentally ill person, alcohol abuser or conservatee holds real
property, in joint tenancy or in common, the general guardian of the
infant, or the committee of the mentally retarded person, mentally ill
person, or alcohol abuser, or conservator of the conservatee, may apply
to the supreme court or to the county court of the county wherein the
real property is situated, for authority to agree to a partition of the
real property. Where such application affects the interests of an
incompetent person or a conservatee who has been committed to a state
institution, and is an inmate thereof, notice of such application must
be given to the superintendent, acting superintendent or state officer
having special jurisdiction over the institution where the incompetent
person or conservatee is confined. Irrespective of the location of any
real property held by an infant in joint tenancy or in common, his
general guardian may make such application to the surrogate`s court
which appointed such guardian. A certified copy of the decree entered in
the surrogate`s court on such application must be recorded in the office
of the clerk of each county in which is situated property affected by
such decree.
2. Such an application must be by a petition, which must describe the
real property proposed to be partitioned; must state the rights and
interests of the several owners thereof; must specify the particular
partition proposed to be made; and must be verified by affidavit. The
court may order notice of the application to be given to such persons as
it thinks proper.
3. If, after due inquiry into the merits of the application, by a
reference or otherwise, the court is of the opinion that the interests
of the infant, or of the mentally retarded person, mentally ill person,
alcohol abuser or conservatee, will be promoted by the partition
proposed, it may make an order authorizing the petitioner to agree to
the partition proposed, and in the name of the infant, or of the
mentally retarded person, mentally ill person, alcohol abuser or
conservatee, to execute releases of his right and interest in and to
that part of the property which falls to the shares of the other
joint-tenants or tenants in common. The court may, in its discretion,
for the furtherance of the interests of said infant, mentally retarded
person, mentally ill person, alcohol abuser or conservatee, direct
partition to be so made as to set off to him or them his or their share
in common with any of the other owners, provided the consent in writing
thereto of such owners shall be first obtained.
4. Releases so executed have the same validity and effect, as if they
were executed by the person in whose behalf they are executed, and as if
the infant was of full age, or the mentally retarded person, mentally
ill person, or alcohol abuser was of sound mind, and competent to manage
his affairs, or the conservatee was competent to manage his affairs.