N.Y. RPP Law § 122-A — New York Code / Act RPP / Article 4 / Section 122-A
Modification of trust mortgages given in prior re-organizations
Status: in_force

§ 122-a. Modification of trust mortgages given in prior\nre-organizations. Any such banking corporation or any individual acting\nas trustee in respect to any mortgage, deed of trust or indenture upon\nreal property, or any leasehold interest therein, against which bonds,\ncertificates, shares or any other evidence of interests therein (herein\ncalled "debts") shall have been issued to the public, and which mortgage\nshall have been given to such trustee by a corporation organized under\nsection one hundred twenty-one hereof, pursuant to a plan of\nreorganization approved by the court and which became effective under\nsection one hundred twenty-two hereof, or which mortgage shall have been\ngiven to or is held by such trustee pursuant to, or by reason of, a plan\nof reorganization heretofore or hereafter approved and confirmed under\nthe bankruptcy acts of the United States or which mortgage shall have\nbeen given to such trustee under a voluntary plan of reorganization by a\ncorporation caused to be organized by a bondholders' committee for the\npurpose of acquiring the property secured by such mortgage, may, without\nforeclosure of such mortgage, and whether or not a default exists\nthereunder, present to the supreme court in the county where all or part\nof the real property affected by such mortgage is situated, a plan for\nthe reorganization of such mortgage, deed of trust or indenture. The\nplan of reorganization may provide for: (1) the extension of the\nmaturity of the mortgage, deed of trust or indenture and the debts\nsecured thereby; (2) the modification of the provisions for interest,\namortization or sinking funds; and (3) such other changes, modifications\nor amendments as may be fair and feasible and for the best interests of\nthe security holders. Such plan may likewise be presented by holders or\nrepresentatives of twenty-five per centum in principal amount of such\nsecurities. Such plan may cover one or more mortgages with respect to\nsaid property. If no default shall exist in the payment of principal or\ninterest, such plan may be presented by the mortgagor or by the owner of\nthe property covered by such mortgage. Hearing upon such reorganization\nplan shall be at such time and place and upon such notice by\npublication, mailing or otherwise as the court shall fix in an order to\nshow cause why the plan should not be approved. No plan shall be\napproved unless the court, after such hearing shall determine that it is\nfair, feasible and for the best interests of the security holders. The\naffirmative consent of the holders of two-thirds of the principal amount\nof the outstanding securities shall constitute a presumption that the\nplan is fair, feasible and for the best interests of the security\nholders. All proceedings hereunder and the rights of the parties hereto,\nincluding the hearing, the final order determining the plan of\nreorganization embodying such modifications, the time and method for the\npersons affected by such plan becoming parties thereto and the right of\nappeal from any order, shall be governed by section one hundred\ntwenty-two hereof; except that if the reorganization shall become\neffective it shall be without prejudice to the right of any particular\nholder of such securities who has duly dissented therefrom to have the\ncourt determine the cash value of such securities as he may have owned\non or before the date of the presentation of the plan of reorganization\npursuant to this section, and providing for the payment or securing his\nratable share of such amount as a condition for declaring the plan\neffective. Upon the order becoming effective the plan shall be binding\nupon all the security holders.\n  If any provision of this section or of section one hundred twenty-two\nhereof or any clause, sentence, paragraph or any part of such section or\nthe application thereof to any person or circumstance shall be held\nunconstitutional or invalid, such decision or judgment shall not affect\nor impair the constitutionality or validity of the remainder thereof,\nbut shall be confined in its operation to the clause, sentence,\nparagraph or part thereof directly involved in such decision or\njudgment.\n