NY Real Prop L § 120-A (2021)
2021 New York Laws RPP - Real Property Article 4 - Uses and Trusts 120-A - Liquidation of Mortgage by Trustee.

§  120-a.  Liquidation of mortgage by trustee. Any banking corporation   or individual acting as trustee in respect to  any  mortgage  upon  real   property  against  which  bonds shall have been issued to the public and   which mortgage shall have been given to such trustee  by  a  corporation   organized under the provisions of section one hundred twenty-one hereof,   pursuant  to  a  plan  of reorganization approved by the court and which   became effective under section one hundred twenty-two hereof,  or  which   mortgage  shall  have  been  given  pursuant to a plan of reorganization   heretofore or hereafter approved and confirmed under the bankruptcy acts   of the United States, or which mortgage shall have been  given  to  such   trustee under a voluntary plan of reorganization by a corporation caused   to be organized by a bondholders' committee for the purpose of acquiring   the  property  secured  by  such  mortgage at a sale under a judgment of   foreclosure  and  sale  of  a  prior  mortgage  given  to  secure  bonds   theretofore  issued to the public, may, with the approval of the supreme   court in the county where all or part of the property affected  by  such   mortgage  is  situate,  sell, assign, discharge or satisfy such mortgage   upon such consideration in  cash  as  the  court  shall  deem  fair  and   equitable  to  the  bondholders  and as the court by order shall direct.   Such order may be made upon the application of the trustee or the holder   of twenty-five per cent of the bonds or of the mortgagor  or  owners  of   the  property  securing  such  mortgage.  The  court may approve a sale,   assignment, discharge or satisfaction at such price as may appear to the   court to be fair and in the best interests of the  bondholders  and  not   less  than  the  cash  value  of said mortgage if sold at a public sale,   unless duly acknowledged  dissents  thereto  by  holders  of  more  than   one-third  of  the  principal  amount of the bonds then outstanding have   been filed. If the application for such sale shall be  consented  to  by   the  holders  of  two-thirds  of  the  principal  amount  of  the  bonds   outstanding such consent shall constitute a presumption that it is  fair   and  in  the  best  interests  of  the bondholders that said mortgage be   liquidated at the price fixed in such consent and the court may  approve   a  sale  at  such  amount  unless it shall appear to the court that such   amount is less than the cash value of said mortgage if sold at a  public   sale.  If  the  application shall not be made by the trustee then notice   shall be given to the trustee and  in  any  event  the  order  directing   notice  to the bondholders of the application to liquidate such mortgage   shall provide for personal service of such notice not less  than  thirty   days  before  the  return  date thereof upon not less than ten specified   bondholders whose addresses are known to the  applicant  and  notice  by   mail  to  all  of  the  bondholders  whose  addresses  are known and the   publication of such  notice  once  a  week  on  a  week  day  for  three   successive  weeks  preceding the return date thereof in one newspaper of   general circulation published in the  city  or  county  where  the  real   property  securing  said mortgage is located. Except as herein otherwise   provided all proceedings hereunder and the rights of the parties hereto,   shall be governed by section one hundred twenty-two hereof; except  that   if the order shall become effective it shall be without prejudice to the   right  of  any  particular  bondholder who has filed a duly acknowledged   dissent therefrom, within the time fixed in the order, to have the court   determine the cash value of the mortgage securing such bond if sold at a   public sale and providing for the payment or securing his ratable  share   of such amount as a condition for declaring the order effective.If  any provision of this section or of section one hundred twenty-two   hereof or any clause, sentence, paragraph or any part of such section or   the application thereof to any person  or  circumstance  shall  be  held   unconstitutional  or invalid, such decision or judgment shall not affect   or impair the constitutionality or validity of  the  remainder  thereof,    but  shall  be  confined  in  its  operation  to  the  clause, sentence,   paragraph  or  part  thereof  directly  involved  in  such  decision  or   judgment.