NY Real Prop L § 122 (2021)
2021 New York Laws RPP - Real Property Article 4 - Uses and Trusts 122 - Procedure of Reorganization and Expenses in Connection Therewith.

§   122.  Procedure  of  reorganization  and  expenses  in  connection   therewith.  The reorganization plan may be presented to the  court  with   the  complaint  for  foreclosure, or thereafter by the trustee or by any   persons owning or representing twenty-five per centum of  the  principal   amount  of  the  securities  covered  by such mortgage, deed of trust or   indenture at any time prior to the  foreclosure  sale.  The  plan  shall   contain  a  statement  of the minimum and maximum sums which the trustee   shall bid for the property, which sums may be varied by the  court  upon   its  approval of the plan; and the trustee shall not incur any liability   by reason of its failure to bid more than said maximum sum. The  trustee   shall   not   be  liable  for  any  action  in  executing  the  plan  of   reorganization approved by the court except for its  wilful  misconduct,   fraud,  bad faith or gross negligence. Hearings upon such reorganization   plan  shall  be  at  such  time  and  place  and  upon  such  notice  by   publication, mailing or otherwise, as the court shall fix in an order to   show  cause  why  the  plan  should not be approved. The trustee and any   person beneficially interested  in  said  mortgage,  deed  of  trust  or   indenture,  and  any  person  whose  rights  may  be  affected  by  such   reorganization, may appear upon the return day  of  the  order  to  show   cause  or  at  any  adjournment  thereof,  and  submit objections to and   modifications of the plan or an alternate plan, and the court shall hear   the parties by affidavit or summarily or otherwise, as in its discretion   it  may  direct,  and  thereupon   finally   determine   the   plan   of   reorganization  and fix the time and method for persons affected by such   reorganization to become parties thereto. Where neither the mortgage  or   indenture,   nor  the  statute  relating  to  the  particular  class  of   securities nor  any  other  statute,  authorizes  the  purchase  of  the   property  on behalf of all the holders of bonds or certificates of parts   or shares, then if any holder, within twenty days after the approval  of   the  plan,  shall  file  with  the  court  a  duly  acknowledged dissent   therefrom, the court shall determine the cash value of the  property  as   if sold at a public sale and such dissenting holder shall be entitled to   be  secured  for  his  ratable  share  of such amount as a condition for   declaring the plan effective. In all other cases the reorganization plan   shall be deemed binding on all  holders  of  bonds  or  certificates  of   shares or parts unless within twenty days after the approval of the plan   one-third  in  principal  sum  of such holders shall file with the court   duly acknowledged dissents therefrom; in which event  the  plan  may  be   abandoned or may be further modified as the court shall direct, with the   same  right of dissent as aforesaid as to any subsequently amended plan.   Notice  of  the  court's  approval  of  the  plan  shall  be  given   by   publication,  mailing  or otherwise as the court may in particular cases   or by general rule direct. Any person  aggrieved  by  any  determination   hereunder  shall have such rights of appeal as are granted to a party to   a special proceeding. The expenses and compensation of the  trustee  and   of  any  committee  or  person  who  shall  have  submitted  a  plan  of   reorganization or modifications thereof shall be fixed at  such  sum  as   the court may deem reasonable and shall be chargeable as a lien upon the   property  or collectible through their assumption by the new corporation   or in such other manner as the court may approve.   All proceedings  and   appeals  in  respect  to the plan of reorganization shall be entitled to   preference over all other civil causes  next  in  order  to  actions  or   special  proceedings  in  which  the people of the state or any officer,   board or political subdivision thereof shall be a party.